2006 Yearbook - American Academy of ActuariesNo part of this book may be reproduced in ... 10 2006 Yearbook • American Academy of Actuaries Frederick Kilbourne Special Director President,

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AAmerican Academy of Actuaries

2006 Yearbook2006 Yearbook

2 2006 Yearbook • American Academy of Actuaries

Copyright © 2006 American Academy of ActuariesAll rights reserved. No part of this book may be reproduced in

any form without the express written permission of the American Academy of Actuaries.

1100 Seventeenth Street, N.W., Seventh FloorWashington, D.C. 20036

www.actuary.org

Printed in the United States of America

American Academy of Actuaries • 2006 Yearbook 3

ContentsThis Is the Academy .......................................................................................................5

2006 Membership Statistics .................................................................................6American Academy of Actuaries Vision ............................................................7Mission Statement ...................................................................................................7

Academy Structure and Goverance ............................................................................82006 Academy Board of Directors ......................................................................9Committees of the Board ................................................................................... 12Presidential Committees ..................................................................................... 13Secretary-Treasurer Committees ...................................................................... 15

International Committees ........................................................................................... 17Public Policy .................................................................................................................... 18

Overview .................................................................................................................. 18Vision and Strategic Direction .......................................................................... 18Casualty Practice Council ................................................................................... 19

The Casualty Practice Council in 2005 ................................................... 19Casualty Practice Council — 2006 ........................................................... 20

Health Practice Council ....................................................................................... 25The Health Practice Council in 2005....................................................... 25Health Practice Council — 2006 ............................................................... 26

Life Practice Council ............................................................................................. 37The Life Practice Council in 2005 ............................................................ 37Life Practice Council — 2006 ..................................................................... 38

Pension Practice Council ..................................................................................... 45The Pension Practice Council in 2005 ................................................... 45Pension Practice Council — 2006 ............................................................. 46

Council on Professionalism ................................................................................ 51The Council on Professionalism in 2005 ................................................ 51Council on Professionalism — 2006 ........................................................ 52

Risk Management and Financial Reporting Council .................................. 53The Risk Management and Financial Reporting Council in 2005 .. 55The Risk Management and Financial Reporting Council — 2006 .. 56

Academy Policies ........................................................................................................... 59


Membership Requirements................................................................................. 592006 Dues ................................................................................................................ 61Use of Academy Titles and Designations ....................................................... 62Board and Committee Meetings....................................................................... 63Committee Appointment Guidelines .............................................................. 64Bylaws ....................................................................................................................... 65North American Actuarial Council Working Agreement .......................... 78Cross-Border Discipline Agreement ................................................................. 82Equal Opportunity Policy .................................................................................... 85Conflict of Interest Policy ................................................................................... 86Guidelines for Making Public Statements ..................................................... 87Guidelines for the Development of Practice Notes .................................... 92

Academy History ............................................................................................................ 94Past Officers ............................................................................................................ 98Jarvis Farley Service Award ..............................................................................103Robert J. Myers Public Service Award ...........................................................104

Resources, Services, and Benefits ...........................................................................105Member Publications and Electronic Media ...............................................105Acaemy Meetings ................................................................................................108Media Relations ...................................................................................................109How to… ..................................................................................................................110… Pay your membership dues .........................................................................110… Volunteer for Academy Projects .................................................................110… Change the Address in Your Member Record ........................................110… Request a Missing Publication ....................................................................111Academy Staff ...................................................................................................... 112

Actuarial Standards Board ........................................................................................ 115Actuarial Board for Counseling and Discipline .................................................. 119

Professionalism Standards and Code of Conduct .....................................120Professional Standards ......................................................................................121Code of Professional Conduct .........................................................................122


This Is the AcademyThe American Academy of Actuaries is the voice of U.S. actuaries on public policy and pro-

fessionalism issues. It represents the U.S. profession both domestically and internationally. The Academy provides reliable, independent actuarial expertise on public policy issues to

Congress, state legislatures, other policy-makers, regulators, and the public. The Academy also develops and maintains standards of qualification to practice as an actuary.

In addition, the activities of the Actuarial Standards Board (ASB), the Actuarial Board for Counseling and Discipline (ABCD), and the Joint Committee on the Code of Professional Conduct are coordinated through the Academy’s Council on Professionalism. The ASB and ABCD are independent organizations, but they receive administrative support from the Academy.

The Academy’s work is governed by three primary groups: the Board of Directors, the Executive Committee, and the President’s Advisory Committee.

Academy committees and task forces are appointed annually, the period running from the close of one annual meeting to the opening of the next.


2006 Membership StatisticsAcademy Membership

Membership as of Nov. 1, 2005 14,932

Membership as of Nov. 1, 2006 15,047

Academy Membership by Employment

(As of December 7, 2006)

Membership

Employment 2004 2005 2006

Insurance and related organizations 6,690 6,763 7,172

Consulting practice 5,126 5,175 5,252

Government 276 274 266

Academic institutions 44 50 52

Other 737 805 692

Retired 1,402 1,421 1,342

Unaffiliated 487 444 271 Total 14,762 14,932 15,047

Membership by Practice Area 2006*

Casualty 2,799Health 2,635Life 3,184Pension 3,351Risk Management and Financial Reporting 1,051Total 13,020

*Not all members indicated a practice area


American Academy of Actuaries Vision Statement

The vision for the actuarial profession, “The public recognizes actuaries as the architects of financial security,” is realized.

To achieve this vision, it is imperative that:

•Theprofession’spublicsrecognizetheAcademyasthesourceofreliable, independent actuarial expertise bearing on public policy issues, as the organization that establishes and enforces professional actuarial standards at the highest level, and as a collaborative partner in actively furthering the interests of the profession; •AllactuariespracticingintheUnitedStatesaremembersoftheAcademy; •TheAcademyexecutesitsresponsibilitiesatthehighestlevelsofexcellence.

Mission StatementAs the organization representing the entire United States actuarial profession, the Ameri-can Academy of Actuaries serves the public and the actuarial profession both nationally and internationally through:

a. Establishing, maintaining, and enforcing high professional standards of actuarial qualification, practice, and conduct; b. Assisting in the formulation of public policy by providing independent and objective information, analysis, and education; and c. In cooperation with other organizations representing actuaries, •Representingandadvancingtheactuarialprofession,and •Increasingthepublic’srecognitionoftheactuarialprofession’svalue.

Visions for the Core Functional Areas

Professionalism VisionThe profession’s publics acknowledge and respect the exceptionally high level of integrity and competence demonstrated by actuaries.

Public Policy VisionThe Academy is the primary source of impartial expertise and practical advice on public policy issues regarding financial security and management of risk.

Communications VisionAll key audiences recognize the value of the actuarial profession and the Academy’s activities.


Academy Structure and Goverance

The American Academy of Actuaries is a national organization formed in 1965 to bring together, in a single entity, actuaries of all specializations within the United States. A major purpose of the Academy is to act as a public information organization for the profes-sion. Academy committees regularly prepare testimony for Congress, provide information to congressional staff and senior federal policy-makers, comment on proposed federal and state regulations, and work closely with the National Association of Insurance Commis-sioners and state officials on issues related to insurance and other forms of risk financing. The Academy establishes qualification standards for the actuarial profession in the United States and houses two independent boards: The Actuarial Standards Board promulgates standards of practice for the profession, and the Actuarial Board for Counseling and Disci-pline helps to ensure that high standards of professional conduct are met.

Board of Directors

Peter Perkins, PresidentSteven Lehmann, President-ElectJohn Parks, Secretary-Treasurer

Michael Abroe, Vice President, HealthMary D. Miller, Vice President, Casualty

David Sandberg, Vice President, LifeGeoffrey Sandler, Vice President, Professionalism

Donald Segal, Vice President, PensionTimothy Tongson, Vice President, Risk Management and Financial Reporting

Robert Wilcox, Immediate Past PresidentBarbara J. Lautzenheiser, Past President

Robert BeuerleinAl Bingham

Paul BrathwaiteThomas Campbell

Frederick KilbourneEthan Kra

Elise LeibersKarl MadreckiThomas Myers

Stephen RadcliffeEdward Robbins

Sarah SimoneauxP.J. Eric StallardChristine StroudAndrea SweenyThomas TerryPatricia TeufelJames Verlautz


Donald SegalVice President,

Pension2007

Timothy TongsonVP, Risk Manage-ment and Finan-

cial Reporting2007

Robert WilcoxImmediate

Past President2007

Barbara Lautzenheiser

Penultimate Past President

2006

Michael AbroeVice President,

Health2006

Mary D. MillerVice President,

Casualty2006

David SandbergVice President,

Life2007

Geoffrey Sandler Vice President, Professionalism

2006

Peter Perkins President

2008

Steven Lehmann President-Elect

2009

John Parks Secretary- Treasurer

2007

2006 Academy Board of Directors


Frederick KilbourneSpecial DirectorPresident, CCA

2006

Ethan KraRegular Director

2006

Elise LiebersRegular Director

2007

Karl MadreckiRegular Director

2008

Robert BeuerleinSpecial DirectorPresident, SOA

2006

Al BinghamRegular Director

2008

Paul BraithwaiteSpecial DirectorPresident, CAS

2006

Thomas CampbellRegular Director

2007

Thomas MyersSpecial Director,

President-Elect, CAS2007

Stephen RadcliffeRegular Director

2006

Edward RobbinsSpecial Director

President-Elect, SOA2007

Sarah SimoneauxSpecial DirectorPresident, ASPPA

2006


Thomas TerrySpecial Director

President-Elect, CCA2007

Patricia TeufelRegular Director

2006

James VerlautzRegular Director

2008

P.J. Eric StallardRegular Director

2006

Christine StroudSpecial DirectorPresident-Elect,

ASPPA 2007

Andrea SweenyRegular Director

2006

The Board of Directors has 29 members: the Academy’s nine officers; the immediate past and past presidents; 10 regular elected directors; and eight special directors consisting of the presidents and presidents-elect of the American Society of Pension Professionals and Actuaries (ASPPA), the Casualty Actuarial Society (CAS), the Conference of Consulting Ac-tuaries (CCA), and the Society of Actuaries (SOA).

The board establishes the Academy’s goals and priorities. It elects Academy officers and approves the budgets for the Academy. It considers profession-wide policy issues relevant to the Academy’s mission and the profession’s goals. It reviews and, when appropriate, ap-proves interim policy and administrative actions made by the Executive Committee. It also initiates bylaw changes.

Years indicate the year that directors’ terms expire

Board of Directors


Committees of the Board

Executive CommitteeBetween meetings of the Board of Direc-

tors, this committee oversees the operations of the Academy and particularly its coun-cils. This committee has the same powers as the board except for those listed in Article IV of the bylaws. The Executive Committee develops Academy policy subject to board approval and makes recommendations to the board regarding budget, policy, and other important issues.

Peter Perkins, PresidentSteven Lehmann, President-ElectJohn Parks, Secretary-TreasurerMichael Abroe, Vice President, HealthMary Miller, Vice President, CasualtyDavid Sandberg, Vice President, LifeGeoffrey Sandler, Vice President,

ProfessionalismDonald Segal, Vice President, PensionTimothy Tongson, Vice President,

Risk Management and Financial Reporting

Robert Wilcox, Immediate Past PresidentKevin Cronin, Staff Liaison

Audit CommitteeThe Audit Committee is a committee of

the board and is charged with overseeing the annual audit of Academy funds, meet-ing with the Academy’s outside auditor, and reporting on the audit to the president and Board of Directors. It will operate in form and under policies approved from time to time by the Board of Directors.

Stephen Radcliffe, ChairpersonThomas CampbellJames VerlautzJoanne Anderson, Staff Liaison

Personnel and Compensation CommitteeThis committee of the Board of Directors

provides broad-based policy oversight of the Academy’s personnel function, includ-ing both direct and indirect compensation. This committee develops, monitors and maintains the Academy’s policies concern-ing compensation and personnel with in-put from the President’s Advisory Commit-tee and executive staff. The Personnel and Compensation Committee has the responsi-bility to ensure that the Academy’s person-nel policies and programs comply with all applicable laws and regulations. The Person-nel and Compensation Committee reports to the board at least annually.

John Parks, ChairpersonMichael AbroeDonald SegalRobert WilcoxKevin Cronin, Staff Liaison Gail Ingram, Staff Liaison Joanne Anderson, Staff Liaison


Presidential Committees

President’s Advisory Committee

This committee oversees Academy man-agement and prepares recommendations for the Executive Committee on policy issues.

Peter Perkins, ChairpersonSteven Lehmann Robert Wilcox Kevin Cronin, Staff Liaison

Appointed Actuaries Task Force

This committee was formed to extend the concepts of the report of the Casualty Actu-arial Society Task Force on Actuarial Credibility to the appointed actuaries of life and health insurers to the extent that they are applicable, and also to pension actuaries and others who provide actuarial certifications.

Burton Jay, ChairpersonMichael AbroeDonna ClaireKenneth KentMary D. MillerDavid SandbergGeoffrey SandlerDonald SegalTimothy TongsonCraig Hanna, Staff Liaison

Committee on Strategic Planning

This committee is responsible for monitor-ing the implementation of and suggesting revisions to the strategic plan. This involves working with the Academy staff, various com-mittees, and the Board of Directors in admin-istering an annual planning cycle. This com-mittee is also responsible for identifying new strategic issues for consideration by the Board

of Directors and for participating appropriately in professionwide long-term planning.

Steven Lehmann, ChairpersonMichael Abroe Mary MillerJohn ParksPeter PerkinsDavid SandbergGeoffrey SandlerDonald SegalTimothy TongsonKevin Cronin, Staff Liaison

CRUSAPTo spearhead its Critical Review of the

U.S. Actuarial Profession (CRUSAP), the American Academy of Actuaries established a presidential task force in mid-2005. The CRUSAP Task Force is identifying the chal-lenges and opportunities facing the actu-arial profession and will make recommen-dations to the profession for addressing emerging and future developments. Assist-ing the task force is a 30-person advisory panel of actuaries and non-actuaries.

The task force is focusing on identify-ing the actuarial needs of the public and determining whether these needs are cur-rently being met by actuaries or others. The needs of direct users of actuarial services, and of actuaries themselves, are also being identified. To implement its review, the task force has developed web-based question-naires located on its website (www.crusap.net) and is conducting interviews, imple-menting focus groups, and undertaking an extensive literature search.

The CRUSAP effort is financed and staffed by the Academy as a service to the U.S. profession. The Academy’s sister orga-nizations — the American Society of Pen-sion Professionals and Actuaries (ASPPA), the Casualty Actuarial Society (CAS), the Conference of Consulting Actuaries(CCA), and the Society of Actuaries (SOA) — have been supportive of the CRUSAP project. Each of these organizations’ presidents and


presidents-elect sits on the Academy Board of Directors.

Fred Kilbourne, ChairpersonBob CollettKen KentGuy KingJim Rech Jack TurnquistTerri Vaughan Mindy Reiser, Staff Liaison Kevin Cronin, Staff Liaison

Federal Agenda Task ForceThe Federal Agenda Task Force is organized

to coordinate the Academy’s responses to is-sues coming before the Congress, whether they originate with Congress or the administration. In order to accomplish this, the task force shall: identify and track issues falling under this charge; exchange information with the prac-tice councils about developments relating to these issues; coordinate efforts when an issue involves more than one practice council; iden-tify and be familiar with Academy statements and publications that may be helpful in form-ing responses from the Academy; be prepared to provide a spokesperson on short notice on any of these issues, if necessary; take the lead in issues within the scope of this charge regarding personal security, including but not limited to Social Security, Medicare/Medicaid, employee benefits/retirement security ( includ-ing individual accounts, funding and taxation), and federal reforms of insurance regulation.

Cori Uccello, ChairpersonRon Gebhardtsbauer, Vice ChairpersonMichael Abroe Alfred Bingham, JrRalph BlanchardBarbara J. LautzenheiserMary D. Miller Rade T. MusulinDavid K. Sandberg Geoffrey C. SandlerBruce D. SchobelDonald J. SegalTimothy J. Tongson

Craig Hanna, Staff LiaisonNoel Card, Staff Liaison

Nominating CommitteeThis committee nominates a slate of can-

didates for the Board of Directors for presen-tation at the annual meeting and nominates a slate of candidates for Academy officers for presentation to the Board of Directors.

Barbara Lautzenheiser, ChairpersonRobert Wilcox, Vice Chairperson Steven LehmannPeter PerkinsThomas MyersEdward RobbinsChristine StroudThomas Terry Kevin Cronin, Staff Liaison Lauren Bloom, Staff Liaison

Litigation Review CommitteeThis committee provides broad-based

oversight of briefs the Academy submits as amicus curiae to ensure that the subject matter is appropriate for Academy com-ment, that statements contained therein do not contradict Academy positions, and that the briefs have been prepared in accordance with Academy guidelines. It authorizes sub-mission of the briefs to the appropriate courts.

Peter Perkins, ChairpersonMichael Abroe David SandbergDonald SegalMary D. MillerGeoffrey SandlerTimothy TongsonLauren Bloom, Staff Liaison


Secretary- Treasurer

CommitteesJohn Parks, Secretary-Treasurer

Budget and Finance Committee

This committee prepares financial projec-tions and the annual budget, and recommends the dues structure to the Board of Directors. It also develops and maintains the investment policy for Academy funds, such policy to be implemented by the Secretary-Treasurer.

John Parks, ChairpersonAlan Ford Larry GorskiBruce SchobelJohn SchubertJoanne Anderson, Staff Liaison

Communications Review Committee

This Academy Committee is charged with reviewing all Academy communications pro-grams. It provides broad oversight of all Acade-my external communications and publications intended for Academy members and other au-diences. The committee assesses the timeliness and effectiveness of Academy communica-tions. It reviews Academy-only communica-tions efforts and communications programs conducted jointly with other organizations representing actuaries. Its focus is on policies governing the use of communication tools and the roles of staff and volunteers, rather than on the technical content of communications.

Rade Musulin, ChairpersonEdwin Hustead James Murphy Robert Musen John Parks Julia Philips Noel Card, Staff LiaisonChris Robichaux, Staff Liaison

ContingenciesThe editorial advisory board provides policy

guidance, technical advice, and oversight to staff editors in the production of Contingen-cies, the magazine of the actuarial profession.

Julia Philips, ChairpersonDwight Bartlett IIIRobert BrownFrederick KilbourneBarbara LautzenheiserBruce SchobelSusan WitcraftSteve Sullivan, Editor

Actuarial UpdateThe editorial advisory board for the Actu-

arial Update provides policy guidance, tech-nical review, and oversight for the monthly Academy newsletter, which focuses on ma-jor professional issues, public policy devel-opments, and Academy activities.

William CarrollPatrick CollinsAndrew ErmanRade MusulinGeoffrey Sandler Donald SegalLinda Mallon, Editor

Enrolled Actuaries ReportThe editor of the Enrolled Actuaries Re-

port provides policy guidance, technical re-view, and editorial content for the Enrolled Actuaries Report, the quarterly Academy newsletter that examines pension issues and Academy initiatives that are important to enrolled actuaries. The contributing editors of the Enrolled Actuaries Report provide editorial content for the newsletter.

Donald Segal, EditorContributing EditorsAndrew Eisner Bruce Gaffney Ron Gebhardtsbauer


Heather Jerbi James KenneyAdrien LaBombardeDiane StormLinda Mallon, Managing Editor

Committee on MembershipThis committee is responsible for ongo-

ing relations with existing and prospective Academy members. It periodically reviews Academy membership and dues policies and recommends changes to the Board of Direc-tors and Executive Committee. In fulfilling its charges, the committee is to ensure that member affiliations and new-member re-cruitment activities are included as a vital part of the Academy communications plan.

Daniel McCarthy, ChairpersonRichard Bailey Regina Berens Mark Dunbar Todd Erkis Michael Georgas Anne Kelly Gail Ross David Shea Robert Wilcox Chris Robichaux, Staff LiaisonMark Paster, Staff Liaison

Committee on TechnologyThe Technology Committee monitors and

evaluates current and emerging technol-ogy to determine whether and how specific technologies can be used to communicate various Academy messages to members and nonmembers, and to increase the Academy’s effectiveness. In addition, the committee uses information from the Academy archives and other sources to provide a complete da-tabase of actuarial and related resources for members to make the Academy a preemi-nent source of information on public policy affecting its constituencies. The commit-tee also researches and recommends future technological innovations for the Academy

and, as appropriate, coordinates with the Communications Review Committee as well as other North American actuarial organi-zations on matters related to technology.

Robert Musen, ChairpersonWilliam Hall Rade Musulin John Parks Matthew Wessel Mark Paster, Staff Liaison


International Committees

North American Actuarial Council

The North American Actuarial Council (NAAC) provides a business and social fo-rum to promote coordination, cooperation, and trust among the leadership of the orga-nizations representing actuaries in Canada, Mexico, and the United States.

Robert BeuerleinPaul BraithwaiteNorman GendronFrederick KilbourneSteven LehmannCharles McLeodJosé MurielThomas MyersPeter PerkinsAna Maria RamirezEdward RobbinsSarah SimoneauxChristine StroudJosé L. SuarezThomas TerryJesús ZúñigaKevin Cronin, Staff Liaison

Joint Committee on IAA Coordination

Barbara Lautzenheiser, ChairpersonKenneth Buffin, ConferenceRobert Conger, CASSam Gutterman, SOASarah Simoneaux, ASPPAPeter Perkins, AcademyKevin Cronin, Staff Liaison

IAA Oversight CommitteePeter Perkins, ChairpersonMichael AbroeHoward BolnickPaul BraithwaiteTony BroomheadKenneth BuffinWilliam HinesCurtis HuntingtonBurt JaySteven LehmannShu-Yen LiuDaniel McCarthyMary MillerRobert RietzDavid SandbergGeoffrey SandlerDonald SegalTimothy TongsonTerri VaughanRobert WilcoxKevin Cronin, Staff LiaisonLauren Bloom, Staff Liaison


Public Policy

OverviewAs the public policy arm of the U.S. ac-

tuarial profession, the Academy provides independent, objective analysis to policy-makers and regulators. Academy members use their actuarial expertise to contribute to the public debate on major issues rang-ing from Social Security solvency to terror-ism insurance.

The Academy’s public policy efforts — which run the gamut from writing policy papers and testifying before Congress and state legislatures to actuarial analysis of the impact of regulations and working with the NAIC — are supported by the Casualty Practice Council, Health Practice Coun-cil, Life Practice Council, Pension Practice Council, and Risk Management and Finan-cial Reporting Council. The Academy’s se-nior health fellow and senior pension fel-low help represent the Academy on public policy issues.

In recent years, the Academy also has provided an actuarial perspective on key issues by sponsoring Capitol Hill briefings for congressional staff and policy-mak-ers. The Hill briefings have covered such varied topics as Social Security reform, asbestos liability, retirement security, and the Medicare prescription drug benefit. The Hill briefings reflect an increased empha-sis on the public policy debate at the na-tional level. Similarly, members have been called upon to testify on numerous occa-sions about pension funding and medical liability reform issues. At the same time, Academy volunteers continue to work ex-tensively on state insurance issues with the NAIC, the National Conference of Insur-ance Legislators, rule-making bodies such as the Federal Accounting Standards Board and the Governmental Accounting Stan-dards Board, and interested parties such as the American Institute of Certified Public

Accountants and the AARP. International issues have also moved into the foreground in recent years.

To assist Academy members and staff in-volved in public policy activities, the Board of Directors adopted the “Guidelines for Making Public Statements” in 1982. The guidelines were updated most recently in 2006 to cover public statements made in an international context. The Academy’s public statements include issue briefs, monographs, and comment letters, as well as other types of comment and analysis.

Vision and Strategic Direction

Public Policy VisionThe Academy is the primary source of

impartial expertise and practical advice on public policy issues regarding financial security and management of risk.

Strategic Directions1. Educate public policy-makers and the

general public on aspects of issues relating to financial security and actuarial sound-ness to promote the public good.

2. Advocate for public policy outcomes that are actuarially sound.

3. Advocate on behalf of the actuarial profession in order to promote and pro-tect the profession and to increase the in-fluence of the Academy and the actuarial profession in the creation of public policy that affects the profession.

4. Advocate on behalf of the actuarial profession for sound public policy out-comes to increase the recognition, appre-ciation, and use of actuaries in new areas of practice.


The Casualty Practice Council in 2005

In testimony before the Health Subcommittee of the Energy and Commerce Committee, Feb. 10, James Hurley of the Academy’s Medical Malpractice Subcom-mittee, helped to dispel three major misconceptions about med-mal insurance, proving why, “The medical malpractice insurance marketplace continues to be in serious turmoil.” After the hearing, subcommittee chairman Congressman Nathan Deal (R-Ga.), privately asked Hurley some follow up questions.

The Academy accomplished a considerable amount of work behind the scenes last year on issues of continuing importance to casualty actuaries.

When Congress voted in late December to extend the Terror-ism Risk Insurance Act (TRIA) by two years, its action was consistent with inde-pendent and objec-tive analysis provided by members of the Academy’s TRIA sub-group, which was formed to meet re-quests from congres-sional staff seeking independent and ob-jective information, analysis, and educa-tion on the exten-sion or replacement of TRIA. Concerned that differences in separate House and Senate bills couldn’t be reconciled before TRIA expired on Dec. 31, the Academy issued a statement in early December calling for a permanent federal solution and sounding a note of caution about making significant changes to a complex pro-gram without allowing sufficient time for analysis of the various options. The Academy statement came just in time for a significant flurry of Congressional maneuvering around TRIA’s future. Moves to block markup of the two bills, which would have delayed action un-til well into 2006, were abandoned.

The Academy was also active in the area of medical malpractice. In February, James Hurley, former chairperson of the Academy’s Medical Malpractice Subcommittee, testified before the House Energy and Commerce Subcommittee on Health. In April, the Casualty Council pub-

lished a paper on creating medical malpractice closed-claim databases for use by both actu-aries and non-actuaries. And Kevin Bingham, Hurley’s successor as subcommittee chairper-son, represented the Academy in a July Wash-

ington roundtable on medical malpractice that was sponsored by the Alliance for Health Reform.

The subcommit-tee also criticized a report by the Cen-ter for Justice and Democracy, calling it “incomplete, ac-tuarially unsound, and misleading,” and encouraged legisla-tive and regulatory policy-makers to ask their state insurance department actuaries for further clarifica-

tion. On the regulatory front, the Academy’s

Committee on Property and Liability Financial Reporting (COPLFR) delivered a 241-page re-port on risk transfer in P/C reinsurance to the NAIC. COPLFR also sent the NAIC an evalua-tion of a bifurcation approach to reinsurance accounting and commented on a new NAIC reinsurance attestation requirement for CEOs and CFOs that becomes effective in 2006. COPLFR also issued practice guidance for actu-aries helping executives comply with the new requirement.

In the professionalism arena, COPLFR fa-cilitated two popular seminars on loss reserve opinions in October. The Academy also joined a new interorganizational steering committee on actuarial credibility formed by the Casualty Actuarial Society (CAS).


Casualty Practice Council: Mary Miller, Vice President

P/C Risk-Based Capital Committee:Tony George Philips, Chairperson

P/C Financial Soundness/Risk Management Committee:Charles Emma, Chairperson

P/C Products, Pricing, and Market Committee:Anne Kelly, Chairperson

Committee on Property and Liability Financial Reporting:Nancy Watkins, Chairperson

P/C Extreme Events Committee:Dennis Fasking, Chairperson

Joint Casualty Loss Reserve Seminar Planning Committee:Scott Charbonneau, Chairperson

Workers’ Compensation Subcommittee:Timothy Wisecarver, Chairperson

Automobile Insurance Subcommittee:Cara Blank, Chairperson

Medical Malpractice Subcommittee:Kevin Bingham, Chairperson

Property and All Other Lines Subcommittee:Jeff Kucera, Chairperson

Mass Torts Subcommittee:Jennifer Biggs, Chairperson

Terrorism Risk Insurance Act Subgroup:Michael McCarter, Chairperson


Casualty Practice Council — 2006

Mary D. Miller, Vice PresidentRade Musulin, Vice ChairpersonPaul BraithwaiteChristopher CarlsonScott CharbonneauCharles CookCharles EmmaDennis FaskingAlice GannonRoger HayneAnne KellyMary Frances MillerRobert MiccolisThomas MyersTony PhillipsSteven PetlickAndrea SweenyNancy WatkinsScott WeinsteinGreg Vass, Staff Liaison

Property and Casualty Risk Based Capital Committee

This committee works primarily with the National Association of Insurance Com-missioners. At the request of the NAIC, the committee analyzes issues of concern to the NAIC’s Risk-Based Capital Working Group and Task Force and provides recommenda-tions on ways to clarify and improve the risk-based capital formulas.

Tony George Philips, ChairpersonAthula Alwis Wanchin Chou Margaret Germani James Hurley Gerald Kirschner Alexander Krutov Mark Mulvaney Christopher Nice Chester Szczepanski Robert WolfGreg Vass, Staff Liaison

P/C Products, Pricing, and Market Committee

This committee is involved with proac-tively seeking to provide actuarial support, advice, and communications on issues re-lated to property and liability products. This will focus on product features and their de-sign, and may coordinate issues that are fi-nancial and solvency based. The committee will communicate and provide information to the Academy membership or respond to regulatory requests on such product areas. The committee will engage in the develop-ment of public policy at the state, federal, and international levels.

Anne Kelly, ChairpersonKevin Bingham Cara Blank Jeff KuceraTim Wisecarver Greg Vass, Staff Liaison

Workers’ Compensation Subcommittee

Timothy Wisecarver, ChairpersonMichele Bernal Thomas Cawley Brian Clancy Ann Conway Thomas DeFalco John Herzfeld Gary Josephson Thomas Lee Ramona Lee Barry Llewellyn Sarah McNair-Grove David Mohrman Kay RahardjoRial Simons Nancy Treitel Christopher Walker Alfred Weller Greg Vass, Staff Liaison


Automobile Insurance Subcommittee

Cara Blank, Chairperson Jonathan Blake David Chernick David Chernow Patrick Crowe Stacey Gotham Geoffrey WernerGreg Vass, Staff Liaison

Medical Malpractice

SubcommitteeKevin Bingham, ChairpersonBrian Alvers David Axene William Burns Linda Dembiec James Hurley Richard Kipp William Murphy Kenneth Quintilian Sharon Robinson Edward Wrobel Greg Vass, Staff Liaison

Property and All Other Lines Subcommittee

Jeffrey Kucera, ChairpersonMark Allaben Alfred Weller Greg Vass, Staff Liaison

Committee on Property and Liability Financial Reporting

This committee monitors activities re-garding financial reporting related to prop-erty and liability risks, reviews proposals made by various organizations affecting the actuarial aspects of financial reporting and auditing issues related to property and liability risks, and evaluates property and liability insurance and self-insurance ac-counting issues.

Nancy Watkins. ChairpersonMarc Oberholtzer, Vice ChairpersonRobert Wainscott, Vice Chairperson

Lisa Besman Kristi Carpine-Taber Robert Eramo Edward Ford Thomas Ghezzi Holmes Gwynn Joseph Herbers Andrew Kudera Jay Morrow Dale Ogden Marc Pearl Marvin Pestcoe Sheldon Rosenberg Rae Taylor Scott Vandermyde James Votta Thomas Wallace Scott Weinstein Greg Vass, Staff Liaison

P/C Extreme Events CommitteeThis committee has been charged with

identifying possible extreme events (low frequency-high severity events that could generate extremely large property/casu-alty losses). Furthermore, the committee will identify issues relevant to the treatment of such risks including sizing, insurability, pric-ing, funding, reserving, capital management, and loss mitigation. Included in the commit-tee’s charge will be monitoring of federal and state catastrophe legislation and interaction with the NAIC on these issues.

Dennis Fasking, ChairpersonSteven Goldberg, Vice ChairpersonJames Biller Peter Burchett Patricia Furst David Lalonde Stuart Mathewson Anthony Pipia Martin Simons John Swisher Thomas WeidmanGreg Vass, Staff Liaison


Mass Torts SubcommitteeJennifer Biggs, ChairpersonRaji Bhagavatula Hsiu-Mei Chang Bryan Gillespie Thomas Johnston Steven Math Claus MetznerSteven Symon Trevar WithersGreg Vass, Staff Liaison

Casualty Loss Reserve Seminar

Planning CommitteeThis committee develops the program for

the Casualty Loss Reserve Seminar, cospon-sored by the Academy, the Casualty Actuar-ial Society, and the Conference of Consult-ing Actuaries.

Scott Charbonneau, ChairpersonChester Szczepanski, Vice ChairpersonLeigh HalliwellChristopher Bozman William Burns Kenneth Carlton Joseph Herbers Heather Lake George Levine Avivya Stohl Robert WolfJoshua ZirinGreg Vass, Staff Liaison

P/C Financial Soundness/Risk Management Committee

The committee will proactively provide actuarial support, advice, and communica-tions on topics that involve the soundness and risk management of property and li-ability insurance. This includes seeking out additional audiences and topics that should be addressed by this committee so that it can coordinate and respond to issues at a state, federal, and international level. The committee will actively interface with the NAIC and the Financial Reporting Council’s Solvency and Risk Management Task Force.

The committee will also communicate and provide information to the membership of the Academy regarding these issues.

Charles Emma, ChairpersonShawna Ackerman Kevin Bingham Ronnie Fowler Richard Gorvett Jeffrey Kadison Christopher Ritter Deborah Rosenberg James Ross Robert Wilcox Greg Vass, Staff Liaison

Terrorism Risk Insurance Act Subgroup

Michael McCarter, ChairpersonTerry AlfuthGeorge BurgerCecil BykerkDennis FaskingSteven GathjeRade MusulinDaniel SkwireDavid SmithChester SzczepanskiKevin ThompsonGreg Vass, Staff Liaison



The Health Practice Council in 2005

The July 22 Capitol Hill briefing, “Wading Through the Basics on Health Care Risk Pooling,” featured actuarial experts who explained how risk pooling works, ex-amined theory versus reality, discussed the effects of selection and anti-selection, and answered questions from the invited congressional staffers, journalists, and policy-makers. The panelists included Karen Bender (above), chairperson of the Academy’s Association Health Plan work group, David Shea, a member of the Association Health Plan work group, and Cori Uccello, the Academy’s senior health fellow.

As it has for the past few years, Medicare remained one of the top priorities of the Health Practice Council.

In 2005, the council published a new is-sue brief on key areas in Medicare where action is still needed and updat-ed an earlier issue brief on Medicare’s financial condition. In conjunction with the Pension Practice Council, the council held a Capitol Hill Briefing on the fi-nancial conditions of both Medicare and Social Security. At the same time, the council began work on practice notes related to ac-tuarial equivalence under the Medicare Prescription Drug, Improvement, and Mod-ernization Act of 2003 (MMA). In August, the Academy, in conjunction with the Cen-ters for Medicare and Medicaid Services, unveiled an online system for actuaries who attest to the actuarial equivalence of retiree health plans seeking a Medicare Part D sub-sidy. Membership in the Academy is a legal requirement for actuaries filing an attesta-tion.

In other areas, the council published a September backgrounder for legislators and other policy-makers who are evaluating the possibility of offering government-spon-sored reinsurance to health plans as part of an effort to reduce soaring health care pre-miums. The backgrounder grew out of a July meeting on the topic between Senior Health

Fellow Cori Uccello and Rob Bachler, a mem-ber of the Academy’s Medical Reinsurance Work Group, and Rep. Paul Ryan (R-Wis.). Last year also saw the publication of issue

briefs on a variety of topics, includ-ing mental health parity, medical re-insurance, disease management, and association health plans. The Acad-emy hosted a July Capitol Hill briefing for legislative staff, journalists, and other policy-makers on the basics of risk pooling, as a follow up to its AHP issue brief.

On the state front, the Academy pro-vided the NAIC with proposed revisions

to the long-term care experience reporting instructions and forms. The Academy also provided proposed health risk-based capital (RBC) instruction, formula changes, and risk factors that will aid in the implementation of Medicare Part D beginning in 2006. The Academy continued its work on stop-loss RBC issues and provided a U.S. perspective on these and other topics through letters to international organizations. And dur-ing the course of the year, Academy work groups drafted practice notes on a variety of subjects, including small group medical business, individual major medical business, statutory reserves for individual disability income insurance, and actuarial certifica-tion of rates for Medicaid managed care and for the retiree drug subsidy.


Professionalism Liaison: Geoffrey Sandler

Health Practice Council Michael Abroe, Vice President

John Schubert, Vice Chairperson

Committee on Federal Health Issues: Alfred Bingham, ChairpersonThomas Wildsmith, Vice Chairperson

Committee on State Health Issues: William Weller, Chairperson

Medical Malpractice Liason: David Axene

Federal LTC Task Force: P.J. Eric Stallard, Chairperson,Bruce Stahl, Vice Chairperson

Emerging Data Subgroup: David Tuomala, Chairperson

Subgroup on Ways to Provide Coverage: Cathy Murphy-Barron, Chairperson

Subgroup to Update Uninsured Issue Brief:Steele Stewart, Chairperson

Individual Medical Market Task Force: Michael Abroe, Chairperson

Consumer Driven Health Plans Work Group: James Murphy, Chairperson

Small Group Market Task Force: Karen Bender, Chairperson

Uninsured Work Group: Karl Madrecki, ChairpersonCathy Murphy-Barron, Vice Chairperson

Subgroup on What Is Medical Coverage:Karl Madrecki, Chairperson

Health Care Quality Work Group: Michael Thompson, Chairperson

HPC Extreme Events Work Group: Janet Carstens, Chairperson

Medical Reinsurance Work Group: Patrick Collins, Chairperson

Disease Management Work Group: Robert Parke, Chairperson

Medicare Supplement Work Group: Michael Carstens, Chairperson

Medicaid Work Group: Grady Catterall, Chairperson

Stop-Loss Work Group: Shaun Peterson, Chairperson

Experience Forms Work Group: Warren Jones, Chairperson

Principles Based Work Group: Robert Yee, Chairperson

State Long-Term Care Task Force: Robert Yee, ChairpersonWarren Jones, Vice Chairperson

Medicare Part D Subgroup: John Fritz, Chairperson


Health Practice Financial Reporting Committee (Liaison Committee with RMFRC): Rowen Bell, Chairperson

Donna Novak, Vice Chairperson

Medicare Steering Committte: Thomas Wildsmith, Chairperson,Lynette Trygstad, Vice Chairperson

Practice Notes Work Group: James O’Connor, Chairperson

Medicare Outreach Work Group: Mark Litow, Co-Chairperson, Robert Shapiro, Co-Chairperson

Actuarial Equivalence Work Group: John Bertko, Chairperson

AE Retiree Practice Note Work Group:Dale Yamamoto, Chairperson

AE PDP/MAPD Practice Note Work Group:Margaret Wear, Chairperson

Health Practice International Task Force: Michael Abroe, Chairperson

Joint Committee on Retiree Health (Joint With Pension Practice Council):

Jeffrey Petertil, Co-Chairperson, Adam Reese, Co-Chairperson

Enterprise Risk Management Task Force: Michael Abroe, Chairperson


Health Practice Council — 2006

Michael Abroe, Vice President—HealthJohn Schubert, Vice ChairpersonRowen Bell Alfred Bingham Janet Carstens Grady Catterall Kara Clark Ian Duncan Alan Ford Darrell Knapp Karl Madrecki James Murphy Jeffrey Nohl Jeffrey Petertil Geoffrey Sandler Eric Stallard Thomas TomczykCori Uccello Margaret Wear Thomas Wildsmith Holly Kwiatkowski, Staff LiaisonGeralyn Trujillo, Staff Liaison

Senior Health Fellow Cori Uccello

The Academy established the senior health fel-low program in 1998 to strengthen the public policy role of health actuaries. In coordination with the Health Practice Council, the

senior health fellow provides independent actuarial expertise to health policy-mak-ers at both the federal and state levels. The fellow develops and maintains close work-ing relationships with members and staff of congressional committees, executive branch officials, and state insurance regulators. The senior health fellow also acts as the Acad-emy’s chief spokesperson on health policy issues to the news media and other external audiences.

Committee on

Federal Health IssuesThis committee furthers the actuarial pro-fession’s involvement in policy issues related to the design, cost, and financing of the na-tion’s health care. The committee monitors federal legislative and regulatory activities in the health arena and prepares congres-sional testimony, position papers, and other public statements on key health issues. In addition, the committee meets formally and informally with senior federal health policy-makers and their staffs.

Alfred Bingham, ChairpersonThomas Wildsmith, Vice ChairpersonDavid Axene Karen Bender Patrick Collins Alan Ford Donato Gasparro Beth Lieberman Karl Madrecki Mark Mcguire James Murphy Donna Novak Robert Parke Geoffrey SandlerJohn Schubert David Shea Harry Sutton Michael Thompson Thomas Tomczyk Roderick Turner Cori Uccello Holly Kwiatkowski, Staff Liaison


Federal Long-Term Care Task Force

This task force addresses actuarial issues af-fecting long-term care plans. It monitors and comments on developments in this area at the federal level and works with policy-makers to assist in developing public poli-cies in connection with long-term care in-surance policies.

P J Stallard, ChairpersonBruce Stahl, Vice ChairpersonMichael Abroe Malcolm Cheung James Glickman Timothy Gustafson Walter Liptak Bartley Munson Alwyn Powell James Robinson Gordon Trapnell Cori Uccello Robert Yee Holly Kwiatkowski, Staff Liaison

Individual Medical Market Task Force

The Individual Medical Market Task Force furthers the actuarial profession’s involve-ment in policy issues related to the individu-al medical market. The work group monitors federal legislation and regulatory activities and is charged with developing background papers intended to inform and educate se-nior federal policy makers on the workings of the individual medical market.

Michael Abroe, ChairpersonThomas Ahmann Ronald Bachman David Bahn Karen Bender William Bluhm Michael Burks Kenneth Clark Richard Hauboldt Mark Litow Victor Paguia

Bernard Rabinowitz Martha Spenny Roderick Turner Jerome Winkelstein Holly Kwiatkowski, Staff Liaison

Small Group Market Task Force

The Small Group Market Task Force fur-thers the actuarial profession’s involvement in policy issues related to the small group health insurance market. The work group monitors federal legislation and regulatory activities and is charged with developing papers intended to inform and educate se-nior federal policy makers on issues related to the small group market.

Karen Bender, ChairpersonRonald Bachman David Bahn Jennifer Buck Michael Burks James Drennan John Fleming Richard Niemiec Donna Novak John Parsons David Shea Mark Wernicke Jerome Winkelstein Holly Kwiatkowski, Staff Liaison

Consumer Driven Health Plans Work Group

James Murphy, ChairpersonRonald Bachman Karen Bender Patrick Collins Robert Cosway Brad Edmister Jennifer Fleck John Fleming Brent Lee Greenwood Penny Hahn J. Christopher Hall Cara Jareb


Michael Jones Peter Lopatka Lawrence Mccarthy William McNamara Jeffrey Nohl Donna NovakJames O’Connor David Ogden Sunit Patel Jeffrey Petertil Daniel PlanteBernard Rabinowitz Brett RoushEric Sock Robert StahnkeMichael Sturm Harry Sutton David TuomalaMark WernickeHolly Kwiatkowski, Staff Liaison

Emerging Data SubgroupDavid Tuomala, ChairpersonRonald Bachman Robert Cosway Jennifer Fleck Brent Greenwood Penny Hahn James Murphy Sunit Patel Daniel Plante Robert Stahnke Harry Sutton Kurt Wrobel Holly Kwiatkowski, Staff Liaison

Disease Management Work Group

Robert Parke, ChairpersonDavid Axene Kevin Dolsky Ian Duncan Charles Fuhrer Art Lewis Sandra Loyal Catherine Murphy-Barron David Nelson

Donna Novak Timothy Robinson Marcia Sander Geoffrey Sandler Charles Smith Steele Stewart Michael Thompson Howard UnderwoodGreger Vigen Margaret Wear Geralyn Trujillo, Staff Liaison

Health Care Quality Work Group

Michael Thompson, ChairpersonDavid AxenePeter DavidsonJoel HoffmanTimothy LuedtkeCurtis RobbinsGeoffrey SandlerGordon TrapnellHolly Kwiatkowski, Staff Liaison

HPC Extreme Events Work Group

Janet Carstens, ChairpersonLina CheungThomas CorcoranJames DrennanAlan FordScott GuillemetteRobert HastingsJohn LloydHowell PughGeoffrey SandlerJohn StarkJim TooleLisa TourvilleShari WesterfieldHolly Kwiatkowski, Staff Liaison


Medical Reinsurance Work Group

Patrick Collins, ChairpersonRobert BachlerKaren BenderLina CheungJames GuttermanMichael KempBernard RabinowitzMichael RiethTimothy RobinsonBrian ShivelyCori UccelloHoward UnderwoodDaniel WolakHolly Kwiatkowski, Staff Liaison

Uninsured Work GroupKarl Madrecki, ChairpersonCatherine Murphy-Barron, Vice ChairpersonRonald Bachman David Bahn Daniel Bailey Cecil Bykerk Jonathan Camire Patrick Collins Michael Dekker John Dunn Andrew Gennarelli Keith Grassel Peter Hendee John Klemm Stacey Lampkin Art Lewis John Lynch Tom Mellis Stephen Meskin Donna Novak Susan Pierce Michael Rieth Curtis Robbins Carolyn Sadler Thomas Snook Steele Stewart Harry Sutton Giak Diang Tan TanHolly Kwiatkowski, Staff Liaison

Subgroup on Ways to Provide Coverage

Catherine Murphy-Barron, ChairpersonRonald Bachman David Bahn Patrick Collins Michael Dekker Karl Madrecki Tom Mellis Donna Novak Curtis Robbins Carolyn Sadler Steele Stewart Harry Sutton Holly Kwiatkowski, Staff Liaison

Subgroup to Update Uninsured Issue Brief

Steele Stewart, ChairpersonJohn KlemmTom MellisStephen MeskinHarry SuttonHolly Kwiatkowski, Staff Liaison

Subgroup on What Is Medical Coverage

Karl Madrecki, ChairpersonAndrew Gennarelli Peter Hendee Thomas Snook Holly Kwiatkowski, Staff Liaison

Committee on State Health Issues

This committee furthers the actuarial profession’s involvement in policy issues related to state regulation of health insur-ance and other health actuarial issues at the state level. The committee works primarily through interstate associations such as the National Association of Insurance Commis-sioners, but also provides assistance directly to states when appropriate. The committee coordinates closely with the Federal Health


Committee to ensure appropriate Academy involvement in health-related issues at all levels of government.

William Weller, ChairpersonMichael AbroeRowen Bell Karen BenderCharles Bieter Alfred Bingham Vincent Bodnar Michael Carstens Grady Catterall Lina Cheung Kermitt Cox Robert Cumming Alan Ford Burton Jay H Neil Lund Donna Novak Timothy Patria Shaun Peterson P J Stallard Harry Sutton Gordon Trapnell Robert Yee Geralyn Trujillo, Staff Liaison

State Long-Term Care Task Force

This task force addresses actuarial issues af-fecting long-term care plans. It monitors and comments on developments in this area at the state level and works with regulators and policy-makers to assist in developing public policies in connection with long-term care insurance policies. In fulfilling its charge, the task force maintains liaisons with the Na-tional Association of Insurance Commission-ers and other appropriate entities.

Robert K. Yee, ChairpersonWarren Jones, Vice ChairpersonMichael Boerner William CarrollJames Glickman Anthony Green Andrew Haider Norman Hill

Barbara LautzenheiserMark Litow Ronald Lucas Edward Mohoric Bartley Munson Daniel Nitz Julia Philips Mark Press Allen Schmitz Bruce Stahl P J Stallard Richard Tan John Timmerberg Geralyn Trujillo, Staff Liaison

Experience Forms Work GroupWarren Jones, ChairpersonMichael BoernerAllen Schmitz Robert K. YeeGeralyn Trujillo, Staff Liaison

Principles-Based Work GroupRobert K. Yee, ChairpersonDan CathcartWarren JonesKerry KrantzBarbara LautzenheiserAmy PahlJanet PerrieAllen SchmitzBruce StahlEric StallardRichard TanJohn TimmerbergGeralyn Trujillo, Staff Liaison

Medicare Supplement Work Group

Michael Carstens, ChairpersonBaback Alimard David Bahn John Bryson John Cathcart Andrew Erman Michael Frank Michael Frings


Peter Hendee David Kerr Chan Phan David Shea Anthony TurnerGeralyn Trujillo, Staff Liaison

Medicaid Work GroupGrady Catterall, ChairpersonBen Brandon Thomas Carlson Robert Damler William Finch Todd Galloway Lorenz Glaza Thomas Handley Timothy Harris Don Killian John Meerschaert Michael Nordstrom David Ogden F. Kevin Russell Martin Staehlin John Vataha Leigh Wachenheim Gregory Winkler Geralyn Trujillo, Staff Liaison

Stop-Loss Work GroupShaun Peterson, ChairpersonRobert Bachler Devin Dixon Thomas Doran James Kaiser John Mange Ian McAlister Michael McLean Michael Rieth Eric Smithback Ruth Ann Woodley Geralyn Trujillo, Staff Liaison

Medicare Part D SubgroupJohn Fritz, ChairpersonFrank AmrineCorey BergerClint CopelandKarl MadreckiCindy MillerDonna NovakLeigh WachenheimGeralyn Trujillo, Staff Liaison

Health Practice Financial Reporting Committee

This committee monitors activities re-garding financial reporting related to all areas of health practice involving actuaries, reviews proposals made by various organiza-tions affecting the accounting and auditing issues related to the health practice area, and generally is responsible for analysis and recommendations on health practice ac-counting issues. This would include (but not necessarily be limited to) financial report-ing for all entities that accept and spread health benefit plan risk, such as HMOs, in-surers, providers that accept risk (e.g., via global capitation), health benefit trusts for self-funded plans, and employers providing health benefits to their employees (e.g., for FAS 106).

Rowen Bell, ChairpersonDonna Novak, Vice ChairpersonMichael AbroeFrank Amrine James Braue Rodney Brunk Kermitt Cox Peter Howard Lori Huffman Leslie JonesKenny Kan Laurel Kastrup Karen Kirby Darrell Knapp Jinn-Feng Lin Cynthia Miller James O’Connor


Jeffrey Petertil Bernard Rabinowitz Sharon Rivais Michael Smith R. Noreen Verdoliva Shari Westerfield D. Joeff Williams Geralyn Trujillo, Staff Liaison

Practice Notes Work GroupJames T. O’Connor, ChairpersonBarry T. AllenDavid BahnArthur Baldwin IIIRobert BealKaren BenderRichard N. FerreeTim GustafsonScott HaglundDawn HelwigPeter HendeeFoon LewJinn-Feng LinDiana LongJerome LynchCindy MillerDonna NovakJulia PhilipsBernie RabinowitzDavid SheaRay SiwekJack SulgerDouglas W. TaylorD. Joeff WilliamsPaul ZiobrowskiGeralyn Trujillo, Staff Liaison

Medicare Steering CommitteeThis committee provides an oversight role for task forces and work groups established to address Medicare reform initiatives on behalf of the Health Practice Council.

Thomas Wildsmith, ChairpersonLynette Trygstad, Vice ChairpersonJoseph Applebaum David Axene

Dwight Bartlett John Bertko Janet Carstens Michael Carstens Barton Clennon Randall Edwards Patrick Fleming Alan Ford P Hammond James Hickman Dennis Hulet Curtis Huntington Joel Kabala Beth Lieberman Mark Litow James Murphy Donna Novak Anna Rappaport John Sardelis John Schubert Paul Schultz Robert Shapiro Michael Smith Harry Sutton Michael Thompson Thomas Tomczyk Gordon Trapnell Cori Uccello George Wagoner John Wandishin Holly Kwiatkowski, Staff Liaison

Medicare Outreach Work Group

Mark Litow, Co-ChairpersonRobert Shapiro, Co-ChairpersonMichael Abroe Joseph Applebaum Dwight Bartlett Barton Clennon James Hickman Curtis Huntington Anna Rappaport Cori UccelloThomas WildsmithHolly Kwiatkowski, Staff Liaison


Actuarial Equivalence Work Group

John Bertko, ChairpersonMark Bartorelli Albert Bingham April Choi Matthew Hassett Michele Hooper Brian Januzik Stephen Kaczmarek Donna Nezames Mark Olson Jeffrey Petertil Susan Pierce Neela Ranade Adam Reese Wesley Royse Thomas Ruehle Geoffrey Sandler John Schubert Paul Schultz Thomas Tomczyk Cori UccelloDavid Walker Margaret Wear Mark White Thomas Wildsmith Dale Yamamoto Holly Kwiatkowski, Staff Liaison

AE Retiree Practice Note Work Group

Dale Yamamoto, Chairperson Alfred Bingham Derek Guyton Mark Olson John Schubert Mark White Holly Kwiatkowski, Staff Liaison

AE PDP/MA-PD Practice Note Work Group

Margaret Wear, ChairpersonCharles Bloss April Choi Darrell Knapp

Donna Novak Wesley Royse Lynette Trygstad Thomas Wildsmith Holly Kwiatkowski, Staff Liaison

Joint HPC/PPC Committee on Retiree Health

This committee addresses the actuarial profession’s involvement in public policy issues related to health care benefits for retirees. The committee monitors federal activities and prepares public statements in the retiree health area. The committee also serves as a resource for Academy com-mittees involved with Medicare, financial reporting, and retirement benefit issues. It may coordinate issues involving retiree health benefits with other actuarial orga-nizations.

Jeffrey Petertil, Co-ChairpersonAdam Reese, Co-ChairpersonJoseph Beeler Alfred Bingham Peter Ford Marilyn Oliver Mark Olson Neela Ranade James Rizzo Thomas Ruehle John Schubert John Stokesbury Cori Uccello George Wagoner Mark White Dale Yamamoto Heather Jerbi, Staff LiaisonHolly Kwiatkowski, Staff Liaison

Health Practice International Task Force

The Health Practice International Task Force assists in maintaining awareness and com-munication between the US-based health care actuary and the international commu-nity at-large. The task force monitors pro-


posals and guidance generated by interna-tional actuarial organizations and provides commentary as appropriate.

Michael Abroe, ChairpersonJohn BertkoIan Duncan Jinn-Feng Lin John Schubert Geralyn Trujillo, Staff Liaison


The Life Practice Council in 2005

In October, the NAIC finally adopted risk-based capital (RBC) C-3 Phase II instructions, including the Academy’s report and recom-mendations to be phased in effective the end of 2005. And at its December meet-ing, the NAIC’s Life and Health Actuarial Task Force (LHATF) voted to expose for comment a proposal by the council’s Life Reserves Work Group for a new principles-based valuation ap-proach for individual life products. LHATF also voted to expose for comment an up-date to a proposal for a principles-based valuation standard for variable annuity contracts.

Both the adoption of the C-3 Phase II instructions and report and the exposure for comment of individual life and variable annuity proposals represented significant gains in 2005 in the Academy’s continuing effort to encourage more principles-based regulation rather than rely on formulas that actuaries must follow.

As part of that effort, Academy mem-bers met throughout the course of the year with individual state insurance regulators to gather comments and feedback on the principles-based approach and to increase the regulators’ understanding of the con-cept. Similarly, the Academy made the lead presentation at an August informational hearing conducted by the NAIC on replacing

formulaic reserving with a principles-based system.

The Academy was also busy ensuring that working actuaries are up to speed on C-3

Phase II. In anticipa-tion of final passage, the Academy pub-lished a practice note in September that includes details on products covered un-der C-3 Phase II, cal-culation of C-3 Phase II RBC, and implica-tions for insurers. Earlier in the year, the Academy hosted an educational semi-nar on C-3 Phase II in conjunction with the Academy’s May spring meeting.

Other projects completed in 2005 include practice notes on several topics, including one that up-dates several 1995 practice notes on asset adequacy analysis practices used by ap-pointed actuaries and another on the appli-cation of the Financial Accounting Board’s Derivatives Implementation Group State-ment 133 Implementation Issue No. 36 to many modified coinsurance and related in-surance transactions.

Looking forward, the Academy and the Society of Actuaries agreed last summer to an NAIC request to develop a new valuation table (reference) to reflect the preferred underwriting that has developed since the 1990s. The joint effort will support the new standards needed to reflect various levels of preferred mortality for product valuation.

At a seminar held in May, Life Practice Council vice chairperson Tom Campbell was one of the faculty members explaining the potential implications of the Academy’s multi-year effort on the risk-based capital C3-Phase II project. The Academy’s report and recom-mendations were later adopted by the NAIC in October, along with the standard scenario and rules for transi-tion and smoothing, launching a new era of principle-based regulation.


Life Practice Council Dave Sandberg, Vice President

Tom Campbell, Vice ChairpersonLarry Gorski, Vice Chairperson

Principles-Based Actuarial Certifications Steering Committee (Pending Board Approval):

Robert Wilcox, Chairperson

Life Financial Reporting Committee: Darin Zimmerman, Chairperson

Life Products Committee: Cande Olsen, Chairperson,John MacBain, Vice Chairperson

Life Financial Soundness/Risk Management Committee (Formerly Referred to as the SVL II Work Group):

Donna Claire, Chairperson

Tax Work Group: Art Panighetti, Chairperson

Regulatory Interface, Governance and Peer Review Work Group:Shirley Shao, Chairperson

Consistency: Principles, Summary, Definitions and Report Format Work Group: Robert DiRico, Chairperson

Reinsurance Work Group: Sheldon Summers, Chairperson

Life Experience Subcommittee: Larry Gorski, Chairperson

Life Capital Adequacy Subcommittee: Nancy Bennett, Chairperson, Larry Gorski, Vice-Chairperson

Life Valuation Subcommittee: Kory Olsen, Chairperson,Bob DiRico, Vice-Chairperson

Annuity Capital Work Group: Larry Gorski, Chairperson

Life Capital Work Group: Peter Boyko, Chairperson

Economic Generator Work Group: Larry Gorski, Chairperson

Annuity Reserves Work Group: James Lamson, ChairpersonMike Ward, Vice-Chairperson

Variable Annuity Reserve Work Group: Thomas A. Campbell, Chairperson,James Lamson, Vice-Chairperson

Life Reserves Work Group: Dave Neve, Co-ChairpersonTom Kalmbach, Co-Chairperson


Life Practice Council — 2006Dave Sandberg, Vice-PresidentTom Campbell, Vice-ChairpersonLarry Gorski, Vice-ChairpersonNancy BennettMike BoernerEric CarlsonDonna ClaireBob DiRicoTom KalmbachJames LamsonBarbara LautzenheiserJohn MacBainBob MeilanderDave NeveCande OlsenKory OlsenArt PanighettiEd RobbinsSheldon SummersRobert WilcoxDarin ZimmermanAmanda Yanek, Staff Liaison

Life Financial Reporting Committee

This committee monitors and proactively seeks to provide actuarial advice, advocacy, and communication on life insurance top-ics that involve financial reporting matters, with an emphasis on GAAP and interna-tional issues. It also coordinates its activi-ties, as appropriate, with the Life Valuation Subcommittee and the Financial Reporting Council.

Darin Zimmerman, ChairpersonErrol CramerRobert FrascaJames GarvinLarry GulleenNoel HarewoodWilliam HinesEdward JarrettKen LaSorellaPatricia MatsonJohn MorrisKevin Palmer

Len RebackBrian RichardsDavid RockwellLarry RubinCarol SalomoneLance SchulzMichelle SmithAmanda Yanek, Staff Liaison

Life Products CommitteeThis committee is involved with proactively

seeking to provide actuarial support, advice, and communications on life and annuity products. This committee focuses on product features and their design, and may act as a coordinator with other committees on finan-cial and solvency-based issues. The committee communicates and provides information to the membership base of the Academy when there are actuarial developments of interest to the membership body and they warrant ad-ditional communications. The committee also stands ready to respond to regulatory requests on product issues, and the group also proac-tively seeks areas where the Academy ought to be providing regulatory input. The committee engages in the development of public policy at the state, federal, and international levels.

Cande Olsen, ChairpersonJohn MacBain, Vice-ChairpersonNoel AbkemeierDouglas BennettEric CarlsonPaul CarmodyFrancis de RegnaucourtArnold DickeDavid HippenKitty KennedyBarbara LautzenheiserJean LiebmannMichael PressleyThomas RhodesLinda RodwayLarry Rubin David WeinsierAmanda Yanek, Staff Liaison


Principles-Based Actuarial Certifications Steering

Committee(Pending Board Approval)

Robert Wilcox, ChairpersonMike BoernerCecil Bykerk Donna ClaireBob MeilanderGodfrey Perrott Dave SandbergAmanda Yanek, Staff Liaison

Life Financial Soundness/Risk Management Committee

(Formerly Referred to as the SVL II Work Group)

This committee proactively provides ac-tuarial support, advice, and communication on the soundness and risk management of life insurance and annuities. This includes seeking out additional audiences and topics that should be addressed by this committee so it can coordinate and respond to issues at state, federal, and international levels. The committee also communicates and pro-vides information to the membership of the Academy regarding these issues.

Donna Claire, ChairpersonPhilip BarlowNancy BennettMike BoernerPeter BoykoCecil BykerkTom CampbellCharles ChacoskyBob DiRicoTodd ErkisMark FreedmanLarry GorskiCarl HarrisTom KalmbachJackie KeatingJames LamsonBarbara LautzenheiserShawn Loftus

Mike McMahonBob MeilanderSteve NeillDave NeveKory OlsenArt PanighettiDavid RockwellAlbert SekacShirley ShaoSheldon SummersBill WellerBob YeeAmanda Yanek, Staff Liaison

Tax Work GroupArt Panighetti, ChairpersonAl BoothArmand de PaloBarbara GoldDoug HertzMichael HollowayBarbara LautzenheiserCharles MillerKory OlsenBrian Prast Jim ReiskytlBruce SchobelAmanda Yanek, Staff Liaison

Regulatory Interface, Governance and Peer Review

Work GroupShirley Shao, ChairpersonThomas BakosMichael BoernerCecil BykerkTom CampbellDonna ClaireHelen GaltKerry KrantzBarbara LautzenheiserBob MeilanderDave NeveTom RhodesLink RichardsonAmanda Yanek, Staff Liaison


Consistency: Principles, Summary, Definitions and Report Format Work GroupRobert DiRico, ChairpersonTom CampbellDonna ClaireJohn MorrisDave NeveKory OlsenAmanda Yanek, Staff Liaison

Reinsurance Work GroupSheldon Summers, ChairpersonMike BoernerTom CampbellLarry CarsonLeslie JonesAmanda Yanek, Staff Liaison

Life Experience SubcommitteeLarry Gorski, Chairperson

Life Capital Adequacy Subcommittee

This subcommittee analyzes issues with regard to life and annuity capital adequacy and provides recommendations on ways to clarify and improve current life risk-based capital standards. In addition, it coordinates with the Life Valuation Subcommittee to promote the development of integrated, non-formulaic approaches to valuation and capital adequacy. It is also a liaison to the Financial Reporting Council’s Joint Risk-Based Capital Task Force.

Nancy Bennett, ChairpersonLarry Gorski, Vice-ChairpersonPeter BoykoMartin ClaireTodd ErkisLuke GirardAnn Kallus Robert MeilanderCraig Morrow Hubert Mueller

Keith OsinskiMax RudolphKeith Vande VredeGeorge WahleWilliam WiltonMike ZurcherAmanda Yanek, Staff Liaison

Economic Generator Work Group

Larry Gorski, ChairpersonLuke GirardCraig MorrowAmanda Yanek, Staff Liaison

Annuity Capital Work GroupLarry Gorski, ChairpersonAmanda Yanek, Staff Liaison

Life Capital Work GroupPeter Boyko, ChairpersonAryeh BakNancy BennettBruce BohlmanMartin ClaireArnold DickeTodd ErkisTom KalmbachBarbara LautzenheiserDwayne McGrawCraig MorrowDave NeveCarolyn StontzWayne StuenkelKenneth Vande VredeAmanda Yanek, Staff Liaison

Life Valuation SubcommitteeThis subcommittee (with support from the

Life Financial Soundness/Risk Management Committee) proactively seeks to provide actu-arial support, advice, and communication on life insurance topics that involve the valuation of life insurance and annuity products. The subcommittee addresses issues that involve the


valuation of, and support for the valuation of, statutory and tax reserves for these products. The subcommittee also provides support to the Life Financial Reporting Committee on GAAP reserve issues.

Kory Olsen, ChairpersonBob DiRico, Vice-ChairpersonDonna ClaireKerry KrantzJim LamsonBarbara LautzenheiserJim LodermeierJohn MorrisDave NeveSheldon SummersScott Wright Amanda Yanek, Staff Liaison

Variable Annuity Reserve Work Group

Thomas Campbell, ChairpersonJames Lamson, Vice-ChairpersonRichard CombsAndrew EastmanLarry GorskiJohn O’SullivanJames ReiskytlVan VillaruAmanda Yanek, Staff Liaison

Life Reserves Work GroupDave Neve, Co-ChairpersonTom Kalmbach, Co-ChairpersonJose Andrade-CoraCliff AngstmanMary Bahna-NolanAryeh BakMike BarskyJeff Beckley Phillip BeyerBruce BohlmanPeter Boyko Cecil Bykerk Keith Dall Armand de Palo Arnold Dicke Bob DiRico

Alan EmmerTodd Erkis Gary FaldeSteve FerraraRandy Freitag Bruce FriedlandElinor FriedmanCarl FriedrichDieter Gaubatz Nathan Greenlee Jim HaireDale HallJoan Hentschel Michael HollowayLeslie JosephJeff Lane Peter MarionDennis MartinDwayne McGraw Esther MilnesKory OlsenMichael PalaceTony PhippsRichard PlushKaren Rudolph Lance SchulzLarry Segal Carolyn StontzSteve StrommenWayne StuenkelMike TahtPeter Van BeaverJeff VipondDavid WeinsierJohn WeumAmanda Yanek, Staff Liaison

Annuity Reserves Work GroupJames Lamson, ChairpersonMike Ward, Vice-ChairpersonLarry BruningThomas Campbell Thomas ChamberlainMatthew ClarkRichard CombsTim GauleScott Houghton


William KlingLisa LefkowitzKory OlsenChad PadgettRichard PayneMeredith RatajczakRebecca ScotchieIrwin SilberMartin SnowMarc WhinstonAmanda Yanek, Staff Liaison



The Pension Practice Council in 2005With Social Security topping the Bush ad-

ministration’s agenda and Congress focusing on long-term pension funding reform, the Academy was involved in an epic amount of activity in 2005. In addition to produc-ing comments and analysis on a number of pension-related issues, the Academy worked behind the scenes to answer policy-makers’ ques-tions as legislation was crafted.

Shortly after Con-gress approved a two-year temporary replacement of the 30-year Treasury rate as the benchmark for pension liability valu-ation, the Academy formulated guiding principles for overall pen-sion reform. Published in January and February, those principles are now visible in both adminis-tration and congressional reform proposals as a result of Academy initiatives to distribute them in meetings with policy-makers, lobbying orga-nizations, and government agencies engaged in pension reform. Congressional measures in-troduced this year incorporate a number of the Academy’s principles and reflect some of the Academy’s reservations about certain elements in the administration’s proposal.

The need for a different type of publica-tion surfaced when the council conducted its annual Capitol Hill visits in February, meeting with congressional staff and repre-sentatives from the White House, the Labor and Treasury departments, the Congres-sional Budget Office, the Government Ac-countability Office, and the Pension Benefit Guaranty Corp. (PBGC). In response to poli-cy-makers’ questions about specific areas of

funding reform on which little basic infor-mation was available, the council developed Academy fact sheets to provide concise information on credit balances and on the

PBGC and United Airlines.

To encourage de-bate, the Academy redistributed its ex-isting publications on many aspects of So-cial Security reform, including individual account design ques-tions, changes to the benefit formula or taxation of ben-efits, and retirement age adjustment. The Academy also updat-ed information for a revised guide to So-cial Security reform

options, held a February media briefing on Social Security reform, and in April sponsored a Capitol Hill briefing on the 2005 trustees re-ports on Medicare and Social Security.

In July, Ken Kent, then the Academy’s vice president for pension issues, met with mem-bers of the Department of Labor’s Advisory Council on Employee Welfare and Pension Benefits to discuss pension distribution policy. In August, Ethan Kra, a member of the council, testified at an Internal Revenue Service (IRS) public hearing on proposed revisions to Internal Revenue Code Sec. 415 limits on benefits and contributions for qualified plans. Also in August, Donald Segal, the Academy’s incoming vice presi-dent for pension issues, testified at an IRS hearing on re-proposed regulations govern-ing the disclosure of the relative value of optional forms of benefits under defined benefit plans.

On June 14, Academy Senior Pension Fellow Ron Gebhardtsbauer testified before the influential House Ways and Means Subcommittee on Social Security. Gebhardtsbauer laid out the argument for raising the retirement age as a solution to Social Security’s long-term funding shortfall. “Raising the retirement age reduces the annual benefit but doesn’t have to reduce total lifetime benefits be-cause people are living longer,” he said.


Pension Practice Council: Donald Segal, Vice PresidentEthan Kra, Vice Chairperson

Committee on Pension Accounting: William Sohn, Chairperson

Stephen Alpert, Vice Chairperson

Joint Program Committee for the Enrolled Actuaries Meeting:Ronnie Thierman, Chairperson

David Godofsky, Vice Chairperson

Committee on Social Insurance: Eric Klieber, Chairperson

Kenneth Buffin, Chairperson (effective April 2006)

Pension Committee: James Verlautz, Chairperson

Chester Andrzejewski, Vice Chairperson

Multiemployer Plans Task Force: James McKeogh, Chairperson

Public Plans Task Force: Lawrence Wilson, Chairperson

Retirement Security Principles Task Force: Bruce Schobel, Chairperson

Stock Options Task Force: Thomas Terry, Chairperson

Joint Academy/SOA Task Force on Financial Economics and the Actuarial Model:

Jeremy Gold, ChairpersonMichael Peskin, Vice Chairperson

Joint Committee on Retiree Health (Joint with Health Practice Council):Jeffrey Petertil, Co-ChairpersonAdam Reese, Co-Chairperson


Pension Practice Council — 2006

Donald Segal, Vice PresidentEthan Kra, Vice ChairpersonStephen Alpert Chester Andrzejewski Donald Barnes Kenneth Buffin Edward Burrows Ron Gebhardtsbauer Jeremy Gold Eli Greenblum Emily Kessler Eric Klieber James McKeogh John Parks Michael Peskin Adam Reese Bruce Schobel Lawrence Sher William Sohn Kenneth Steiner Thomas Terry James Verlautz Lawrence Wilson Heather Jerbi, Staff Liaison

Senior Pension Fellow Ron Gebhardtsbauer

The Academy established its senior pension fellow program in 1995 to build the credibility of pension actuaries on Capitol Hill and to promote constructive de-bate on national retirement

income policy. Through regular interaction with federal regulators and legislators and Academy volunteers, the senior pension fel-low influences Washington legislators and, by extension, other governments and regu-lators to rely on the Academy as the objec-tive resource for the knowledge and skills of the actuarial profession.

The senior pension fellow works with the Pension Practice Council and serves as the

profession’s primary policy liaison on pen-sion issues. He establishes and develops close relationships with the congressional tax-writing and pension staff and regula-tors within the executive branch.

Committee on Pension Accounting

This committee monitors activities and reviews proposals regarding financial re-porting related to pension plans. The com-mittee is generally responsible for analysis and recommendations on pension account-ing issues.

William Sohn, ChairpersonStephen Alpert, Vice ChairpersonCurtis Cartolano Arthur ConatJerrold DubnerKenneth FriedmanRon Gebhardtsbauer Emily Kessler Tonya Manning Wendy Mcfee Thomas MianoBruce Monte Dennis Polisner James Rizzo Diana Scott John Steele John Stokesbury Heather Jerbi, Staff Liaison

Committee on Social Insurance

This committee provides and promotes actuarial reviews and analyses of U.S. social insurance systems. The committee prepares comments on pending legislation regarding federal social insurance programs and gov-ernment reports on these programs.

Eric Klieber, ChairpersonKenneth Buffin Edward Burrows Eli Donkar Ron Gebhardtsbauer


Stephen Goss Robert Randall Richard Rasiej Paul Robberson Zenaida Samaniego Bruce Schobel P J Eric Stallard Kenneth Steiner Joan Weiss James Wiseman Heather Jerbi, Staff Liaison

Pension CommitteeThis committee addresses actuarial is-

sues affecting public and private pension plans, excluding financial reporting. The committee monitors federal tax, PBGC, and other ERISA-related developments. It con-sults with Congress and relevant regula-tory agencies on the effect of regulation on employer pensions and retirement security, and comments on pending legislation and regulations.

James Verlautz, ChairpersonChester Andrzejewski, Vice ChairpersonDonald Barnes Edward Burrows Lawrence Deutsch Ron Gebhardtsbauer Jeremy Gold Allen Gorrelick Dennis Graf Eli Greenblum David Kass Emily Kessler Ethan Kra Lisa Larsen Christine Mahoney Gerard Mingione John Moore Brian O’Konski Nadine Orloff John Parks Michael Pollack Mark Ruloff Donald Segal Lawrence Sher

William Sohn Judy Stromback Lawrence Wilson Sarah Wright Carolyn Zimmerman Heather Jerbi, Staff Liaison

Multiemployer Plans Task Force

James McKeogh, ChairpersonRobert Bolton James Dexter Ron Gebhardtsbauer Stanley Goldfarb Eli Greenblum Douglas Holden Kenneth Kent John Molinar Brian O’Konski Howard Rog James Shake Samuel Stanley Peter Verne Heather Jerbi, Staff Liaison

Public Plans Task ForceLawrence Wilson, ChairpersonDeborah Brigham Leonard Cargill Thomas Cavanaugh Ron Gebhardtsbauer Lawrence Johansen Kenneth Kent Robert May Stephen McElhaney Althea Schwartz Richard YoungHeather Jerbi, Staff Liaison

Retirement Security Principles Task Force

Bruce Schobel, ChairpersonEdward Burrows Kenneth Kent Anna Rappaport Richard Schreitmueller John Turner


Thomas Wildsmith John Wilkin Manha Yau Heather Jerbi, Staff Liaison

Stock Options Task ForceThomas Terry, ChairpersonTerry Adamson Glenn Bowen Ted Buyniski Charles Cahill Wing Chan Don Delves Carrie Duarte Mark Evans Ron Gebhardtsbauer Albert Johnson Kenneth Kent Emily Kessler John Luff John McArthur James McPhillips John Miller Nicholas Mocciolo John Parks Alan PerryStacy Powell Nicholas ReitterLarry Rubin Marcia Sander Sean Scrol Donald Segal Lawrence Sher Matthew Siegel John Stokesbury Scott Turner James Verlautz Aaron Weindling Stephen Zwicker Heather Jerbi, Staff Liaison

Joint AAA/SOA Task Force on Financial Economics and the

Actuarial ModelJeremy Gold, ChairpersonMichael Peskin, Vice ChairpersonChristopher Bone Edward Burrows Daniel Cassidy Andrew Dansereau Gordon Enderle Eric Friedman Ron Gebhardtsbauer Malcolm Hamilton Richard Herchenroether R. Evan Inglis Kenneth Kent Emily Kessler Eric Klieber Ethan Kra Gordon Latter Gerard Mingione Raymond Murphy Robert North, Jr. William Reimert Brian Septon William Sohn Andrew Wozniak Heather Jerbi, Staff Liaison

Joint Program Committee for the Enrolled Actuaries

MeetingThis committee develops a program for

the Enrolled Actuaries Meeting, cospon-sored by the Academy and the Conference of Consulting Actuaries.

Ronnie Thierman, ChairpersonDavid Godofsky, Vice ChairpersonPaul Angelo Brian Donohue Lorraine Dorsa Bruce Gaffney David Jarrett Dean Kepraios Sandra Kruszenski John Lowell


Nadine Orloff Robert Schramm Donald Segal Ben Upchurch Amy Viener Heather Jerbi, Staff Liaison

Joint Committee on Retiree Health

This committee addresses the actuarial profession’s involvement in public policy issues related to health care benefits for retirees. The committee monitors federal activities and prepares public statements in the retiree health area. The committee also serves as a resource for Academy committees involved with Medicare, financial reporting, and retirement benefit issues. It may coor-dinate issues involving retiree health ben-efits with other actuarial organizations.

Jeffrey Petertil, Co-ChairpersonAdam Reese Co-ChairpersonJoseph Beeler Alfred Bingham Peter Ford Marilyn Oliver Mark Olson Neela Ranade James Rizzo Thomas Ruehle John Schubert John Stokesbury Cori Uccello George Wagoner Mark White Dale Yamamoto Heather Jerbi, Staff LiaisonHolly Kwiatkowski, Staff Liaison


The Council on Professionalism in 2005Britain’s Equitable Life scandal and the

resulting investigation by Sir Derek Morris have had the effect of focusing attention on actuarial professionalism on both sides of the Atlantic.

From the outset of Morris’ inquiry into the U.K. actu-arial profession, the Academy served as an important re-source. In Novem-ber 2004, Morris attended a meeting of the International Actuarial Associa-tion in Washington and met with Acad-emy President Rob-ert Wilcox to discuss the U.S. profession’s public policy ac-tivities, particularly Academy efforts to reach out to legis-lators, regulators, and interested par-ties (including the general public) on issues with actuarial implications, such as Social Security, Medicare, life insurance sales illustrations, and pension reform. Wilcox and Morris also discussed aspects of U.S. actuarial profes-sionalism, focusing on the standard-setting process, the counseling activities of the ABCD, and elements of the Code of Profes-sional Conduct that specifically address the public interest. Early in 2005, Wilcox traveled to London for further discussion on issues such as discipline, litigation risk facing the profession, and the ways actuaries operate in statutorily reserved roles. The Academy

also provided extensive written comments on the interim findings of the Morris review when they were released in February.

At the same time, the Academy published discussion papers on the framework of actuarial profes-sionalism and on disclosure under the code. And in No-vember, more than 300 actuaries tuned in to take part in the Academy’s free webcast on effec-tive actuarial com-munications with clients, employers, regulators, and oth-ers.

In an effort to get a better sense from working actuaries of how professional-ism affects them in their daily duties, the Academy circulated a survey designed to measure familiarity with the standards, the code, the qualifi-cation standards, and

the work of the ABCD. More than 1,800 ac-tuaries responded to the survey, whose results were discussed at the Academy’s 2005 spring meeting in May.

The Academy’s annual Life and Health Qualifications Seminar continued to be a popular draw, selling out for the second year in a row. And the Academy expanded continuing education opportunities in pro-fessionalism by offering a Professional Stan-dards Seminar in April in conjunction with the annual Enrolled Actuaries Meeting.

More than 200 actuaries tuned in Nov. 29 to take part in the Academy’s free webcast on effective actuarial communications. The session, which provided listeners with continuing education credit for logging on, lis-tening, and participating, proceeded without a hitch. Speaking on the webcast, which focused on effective communication with client, employers, regulators, and others (as well as the implications of not communi-cating effectively), were Donna Claire, former Academy vice president for life issues, Ken Kent, former Academy vice president for pension issues, and Lauren Bloom, the Academy’s general counsel and director of profes-sionalism.


Council on Professionalism:Geoffrey Sandler, Vice PresidentKenneth Kent, Vice Chairperson

Committee on Actuarial Public Service: Eli Donkar, Chairperson

Committee on International Issues: Curtis Huntington, Chairperson

Committee on Professional Responsibility: Tom Bakos, Chairperson

Joint Committee on the Code of Professional Conduct: Kenneth Kent, Chairperson

Life and Health Qualifications Seminar Task Force: D. Joeff Williams, Chairperson

Committee on Qualifications: Kathleen Riley, Chairperson

Independence Task Force: Vincent Amoroso, Chairperson


Council on Professionalism — 2006

Geoffrey Sandler, ChairpersonKenneth Kent, Vice ChairpersonVincent Amoroso Joseph Applebaum Tom Bakos Cecil Bykerk Donna Claire Charles Cook Eli Donkar William Falk Jacqueline Friedland John Gleba Curtis Huntington Burton Jay Neil Parmenter Robert Rietz Kathleen Riley F. Kevin Russell Allan Ryan Kenneth SteinerLance WeissD. Joeff Williams Lauren Bloom, Staff LiaisonKatherine Pardee, Of Counsel

Committee on Actuarial Public Service

This committee promotes the contribu-tions of actuaries working in the public sector, develops statements and policies on issues affecting public sector actuaries, and encourages actuarial employment and other participation in public service areas.

Eli Donkar, ChairpersonElizabeth Hale Nancy Kichak Joel Sitrin Neta Warren Joan Weiss Richard Young Lauren Bloom, Staff Liaison

Committee on International Issues

This committee is responsible for all liaison activities with the international actuarial com-munity involving international professional issues, including: a) monitoring international developments with respect to codes of con-duct, qualification standards, and standards of practice; b) reviewing qualifications of in-ternational applicants for membership in the Academy, and recommending actions on the applications; c) responding to inquiries and, if appropriate, forwarding the response to an Academy committee or to one of the other U.S.-based actuarial organizations; d) rec-ommending Academy appointments of U.S. actuarial representatives to all international boards and committees; e) responding to as-signments from the Academy leadership and inquiries from other Academy committees; f) communicating to members of the Academy and other U.S.-based actuarial organizations; g) interacting with the international relations committees of other actuarial organizations in Canada, Mexico, and the United States; and h) presenting new initiatives to the Academy leadership.

Curtis Huntington, ChairpersonAmy Bouska Kenneth Buffin Robert Conger Stephen Kellison Barbara Lautzenheiser W. James MacGinnitie Peter Perkins Lauren Bloom, Staff Liaison

Committee on Professional ResponsibilityThis committee promotes knowledge of

standards of conduct, qualification, and practice within the profession, and suggests ways and means for enforcement, compli-ance, and monitoring of the effectiveness of those standards.

Tom Bakos, Chairperson


William Cutlip Jeffrey Kucera Robert OreanAnna RappaportCarl Shalit Russell SutterJ. Kevin WattsMarc WhinstonKatherine Pardee, Of Counsel

Joint Committee on the Code of Professional Conduct

This committee monitors the Code of Pro-fessional Conduct of the U.S.-based organi-zations representing actuaries and recom-mends necessary amendments to the code to all of the U.S.-based organizations.

Kenneth Kent, ChairpersonPaul Braithwaite Morris Chambers Ruth Frew Sam Gutterman Luis Huerta Lauren Bloom, Staff Liaison

Life and Health Qualifications Seminar Task Force

D. Joeff Williams, ChairpersonDonna ClaireDarrell KnappCraig Morrow Bernard Rabinowitz F. Kevin Russell Katherine Pardee, Of Counsel

Committee on QualificationsThis committee investigates issues aris-

ing with respect to the minimum require-ments necessary to qualify members to per-form publicly required actuarial functions. It recommends to the Board of Directors minimum qualification standards, includ-ing continuing education requirements for such members, and counsels members on questions relating to individual qualifica-tions. It also develops guidelines for the ad-

ministration of the Academy qualification standards, including continuing education requirements.

Kathleen Riley, ChairpersonNolan AschDonna ClaireMary Frances Miller Carl Shalit Henry Siegel Frank Stone Katherine Pardee, Of Counsel

Independence Task ForceVincent Amoroso, ChairpersonWilliam Falk Godfrey Perrott Alice Rosenblatt Lauren Bloom, Staff Liaison


The Risk Management and Financial Reporting Council in 2005

In 2005, the council was responsible for monitoring a wide variety of issues, from the rapid development of insurance regulatory principles and standards on the international level to the global convergence of ac-counting standards, the continuing evo-lution of enterprise risk management, and the possibility of federalized insurance supervision.

In the area of fed-eral regulation of in-surance, the council has kept tabs on the development of the State Modernization and Regulatory Trans-parency (SMART) Act in the House Financial Services Committee. The Academy also commented on an optional federal charter plan proposed by the Optional Federal Charter Coalition, an ad hoc organi-zation whose members include the American Bankers Association, the American Council of Life Insurers, the American Insurance Associa-tion, and the Financial Services Roundtable. In March, the Academy met with representatives of the Government Accountability Office to discuss actuarial work, insurance supervision issues, and the impact of actuaries on prod-uct development and pricing. The Academy followed up on questions that arose at the meeting with further comments in June. In an August letter to the coalition, Academy Presi-dent Robert Wilcox urged that any federal in-surance proposal include an Office of the Chief Actuary and define a “qualified actuary” as a member of the Academy.

Through its Financial Reporting Committee,

the Risk Management and Financial Reporting Council has established a pattern of meeting annually with various accounting and auditing stakeholders. The committee met with repre-

sentatives from the Financial Account-ing Standards Board in October, with the American Institute of Certified Public Accountants in April, and with the Public Company Account-ing Oversight Board and with the Secu-rities and Exchange Commission in June.

In the interna-tional arena, the Academy comment-ed in March on In-ternational Actuarial Association practice

guidelines for actuaries working with new international accounting standards. The Academy is also working with the Actuarial Standards Board to adapt those guidelines for the United States as a series of practice notes. In August, the Academy commented to the International Association of Insur-ance Supervisors (IAIS) on the development of various global standards for assessing in-surer solvency and met with representatives of the NAIC to discuss its approach toward both those standards and related accounting guidance from the International Accounting Standards Board.

In recognition of the emerging importance of enterprise risk management (ERM), the Academy formed an ERM task force in January that offers all North American actuarial orga-nizations a forum for discussing various ERM-related initiatives under consideration.

Members of the Risk Management and Financial Reporting Council met with officials of the Secu-rities and Exchange Commission and the Public Company Accounting Oversight Board in June to discuss a wide range of issues. Topics included the Academy’s ongoing work on finite risk transfers, concerns about the SEC’s contractual obligations table, and the “use of experts” for both auditing and accounting purposes.


Risk Management and Financial Reporting Council:Timothy Tongson, Vice President

Ralph Blanchard, Vice Chairperson

Financial Reporting Committee: Henry Siegel, Chairperson

Andrea Sweeny, Vice Chairperson

Risk Management and Solvency Committee: James Rech, Chairperson

TBD, Vice Chairperson

Best Estimates Work Group:Darrell Knapp, Co-ChairpersonNancy Watkins, Co-Chairperson

Joint Risk-Based Capital Work Group:Rowen Bell, Chairperson

James Reiskytl, Vice Chairperson

ERM Task Force:James Rech, Chairperson


The Risk Management and Financial Reporting

Council — 2006The Risk Management and Financial Re-

porting Council oversees the Academy’s work on domestic and international risk management and financial reporting is-sues that affect multiple areas of practice. The RMFRC also serves as a liaison to pub-lic policy-makers, the financial community, and insurance industry representatives on these issues.

Timothy Tongson, VP/ChairpersonRalph Blanchard, Vice ChairpersonMichael Abroe Rowen Bell Burton JayDarrell Knapp Daniel Kunesh James Rech James Reiskytl David Sandberg Geoffrey Sandler Donald Segal Henry Siegel Andrea Sweeny Patricia Teufel James Verlautz William Weller Staff Liaison, Vacant

Financial Reporting Committee

This committee coordinates and devel-ops Academy work on domestic and inter-national financial reporting issues that af-fects multiple areas of actuarial practice. The committee also monitors related work within the other practice councils to ensure consistency and avoid conflicts across prac-tice areas.

Henry Siegel, ChairpersonAndrea Sweeny, Vice ChairpersonRowen Bell Ralph BlanchardJeffrey Courchene

Kermitt Cox Douglas Doll Victoria Grossack Tom Herget William Hines Gerald Kirschner Frederick Kist Darrell Knapp Joseph Koltisko Kenneth LaSorella Pierre Laurin Jinn-feng Lin Mike Lombardi Jay Morrow Marc Oberholtzer Michael Rieth Marc Slutzky William Sohn Stephen Strommen James Verlautz Nancy WatkinsDarin Zimmerman Staff Liaison, Vacant

Best Estimates Work GroupDarrell Knapp, Co-ChairpersonNancy Watkins, Co-chairpersonRowen Bell Richard Beverage Ralph Blanchard Rodney Brunk Aaron Halpert Leslie Jones Cynthia Miller Donna Novak James O’Connor Chandrakant Patel Michael Schmitz James Shah Lisa Slotznick Marc Slutzky Philip Turner William Weller Staff Liaison, Vacant


Risk Management and Solvency Committee

This committee coordinates and develops Academy work on domestic and interna-tional solvency and risk management issues that affect multiple areas of actuarial prac-tice. The committee also monitors related work within the other practice councils to ensure consistency and avoid conflicts across practice areas.

James Rech, ChairpersonTBD, Vice-ChairpersonRowen Bell Nancy Bennett Michael Boerner Robert Brown Maryellen Coggins Kris DeFrain Charles Emma Melinda Fleet Alan Ford Wendy Germani Larry Gorski Elise Liebers Michael McCarter Mary Miller Donna Novak Albert Riggieri David Sandberg John Stark Andrea Sweeny William Weller Herbert Wolf Staff Liaison, Vacant

Joint Risk-Based Capital Work Group

Rowen Bell, ChairpersonJames Reiskytl, Vice ChairpersonRalph Blanchard Robert Brown Kay Cleary Alan Ford Larry Gorski Burton Jay Michael McCarter

William Weller Staff Liaison, Vacant

ERM Task ForceJames Rech, ChairpersonMichael AbroeEduardo EstevaBarry FranklinKenneth KentDonald MangoBeverly MargolianMax RudolphFrank SabatiniDavid SandbergShaun WangStaff Liaison, Vacant


Academy Policies

Membership Requirements

The requirements for admission to member-ship in the Academy are set forth in Article I of the Bylaws and in these procedures.

Education RequirementsThe Academy Board of Directors, in accor-dance with Article I, Section 2(B) of the By-laws, prescribes the following educational requirements for prospective members. An applicant who has attained the indicated status in one of the organizations listed be-low shall be deemed to have met the edu-cation requirements for admission to mem-bership:

A. Associateship in the Casualty Actuarial Society;

B. Associateship in the Society of Actuaries;C. M.S.P.A. or F.S.P.A. in the American Soci-

ety of Pension Professionals and Actuar-ies;

D. Membership in the Conference of Con-sulting Actuaries;

E. Enrolled Actuary status under Title III, Section C of the Employee Retirement In-come Security Act of 1974;

F. Fellowship in the Canadian Institute of Actuaries;

G. Fellowship in the Faculty of Actuaries in Scotland;

H. Fellowship in the Institute of Actuaries in Great Britain;

I. Membership in the Colegio Nacional de Actuarios in Mexico;

J. Fellowship in the Institute of Actuaries of Australia.

An applicant who has attained actuarial educational credentials other than those enumerated above may submit those cre-

dentials to the Academy for review and ap-proval by the Membership Committee and the Executive Committee.

Good Moral Character and Professional Integrity

A. Applicants to the Academy must be of good moral character and have professional in-tegrity. Evidence of the lack of good moral character or professional integrity shall be grounds for rejection of an application to membership in the Academy.

B. In those cases where good moral char-acter and professional integrity cannot be assumed, the Membership Committee and Executive Committee are empowered to call for evidence of such good moral character and professional integrity.

Experience RequirementAn applicant must, at the date of applica-tion, have had at least three years of full-time equivalent experience in responsible actuarial work. “Responsible actuarial work” is defined as work that has required knowl-edge and skill in solving practical actuarial problems in any of the fields identified in the Academy Bylaws. The following guide-lines apply to experience:

A. At least one of the three years of respon-sible actuarial experience must fall within the five years preceding the date of ap-plication.

B. Teaching experience in actuarial courses may be considered for the three-year re-quirement. Non-actuarial-specific cours-es, such as probability and statistics, do not count as actuarial courses for this purpose.

C. Summer, part-time, and other intermit-tent experience may be considered for the three years of full-time equivalent experience.

D. Experience obtained outside the United States may be considered for the three-year requirement.


An applicant who has practiced in any other field that is actuarially related may submit information about his or her field to the Academy for review and approval by the Membership Committee and the Executive Committee.

Additional Requirements for Nonresidents and New

ResidentsA. Nonresidents

1. Nonresidents must certify their familiar-ity with U.S. laws and practices in their “actuarial practice area” as that term is used in the Qualification Standards for Prescribed Statements of Actuarial Opin-ion promulgated by the Academy through its Committee on Qualifications.

2. In those cases where familiarity with actuarial practices and principles in the United States cannot be assumed, the Membership Committee and Executive Committee are empowered to call for evidence of such familiarity.

3. Nonresidents must state their need for membership in the Academy.

B. New ResidentsResidents of the United States for fewer than three years must satisfy the require-ments to which nonresidents are subject.

CertificationApplicants must certify their willingness to comply with the Code of Professional Con-duct of the American Academy of Actuaries, the Actuarial Standards of Practice promul-gated by the Actuarial Standards Board, and the Qualification Standards for Prescribed Statements of Actuarial Opinion promul-gated by the Academy through its Commit-tee on Qualifications. Failure or refusal to provide such a certification is grounds for denial of a membership application.

Application ProcessA. An application should be submitted on an

application form that has been developed and approved by the Membership Com-mittee. An approved application form may be obtained from the Washington office, the Schaumburg office, or the Academy website (www.actuary.org).

B. Applications should be typewritten or handwritten legibly.

C. An application fee of $75 must accom-pany the application. This is a charge for processing the application and will not be applied toward the payment of dues for applicants who are accepted. Application fees paid by applicants who are not ac-cepted will not be refunded.

D. Applications should be addressed to: Membership Manager, American Acad-emy of Actuaries, 1100 17th St., N.W., 7th Floor, Washington, D.C. 20036, (202) 223-8196 (telephone), (202) 872-1948 (fax).

Appeal of Rejection of Application

A. Applications are reviewed by the Mem-bership Committee of the Academy and approved by the Executive Committee pursuant to recommendation from the Membership Committee. An applicant shall be advised of any rejection of an application, and said rejection shall be accompanied by a statement of the reason(s) for the rejection.

B. An applicant may appeal any rejection of an application for membership for any reason to the Board of Directors.

1. An appeal of the rejection of an application should be submitted in writing and should specifically state the reason(s) why the determination of the Executive Committee not to grant the application should not be followed. Any evidence that the appli-cant wishes to submit in support of the appeal should be submitted concurrent with the appeal. Appeals should be


postmarked by no later than 60 days after the date of the letter notifying the applicant of the rejection of the membership application.

2. The Board of Directors will con-sider the appeal at its next regularly scheduled meeting.

3. A decision of the board with re-spect to an appeal will be furnished to the applicant in writing with a state-ment of the board’s reason(s) for ac-cepting or rejecting the application.

4. Any decision of the Board of Di-rectors with respect to an appeal of the rejection of an application will be final and not subject to further appeal.

5. If a rejected applicant’s circum-stances change such that the board’s reason(s) for rejecting the application are no longer pertinent, the applicant may submit a new application for membership.

InquiriesInquiries with respect to the application process or the status of pending applica-tions should be addressed to: Membership Operations Coordinator, American Academy of Actuaries, 1100 17th Street, N.W., 7th Floor, Washington, D.C. 20036.

Prescribed Examinations

The Academy Board of Directors, in accor-dance with Article I, Section 2B of the by-laws, prescribes examinations as follows:

A candidate who has attained by examina-tion the indicated status listed below shall be deemed to have met the education re-quirements for admission to membership:

1. Associateship in the Casualty Actuarial Society and the Society of Actuaries.

2. M.S.P.A. or F.S.P.A. in the American Soci-ety of Pension Professionals and Actuar-ies.

3. Membership in the Conference of Con-sulting Actuaries.

4. Fellowship in the Canadian Institute of Actuaries, the Faculty of Actuaries in Scotland, the Institute of Actuaries of Australia, and the Institute of Actuaries in Great Britain.

5. Enrolled Actuary status under Subtitle C of Title III of the Employee Retirement In-come Security Act of 1974.

6. Membership in the Colegio Nacional de Actuarios.

In those cases where familiarity with actu-arial practices and principles in the United States cannot be assumed, the Executive Committee is empowered to call for evi-dence of such familiarity.

2006 DuesDues as approved by the Board of Directors are $530 per year for members, payable on January 1. Admission in the first third of the year will require full payment of dues for that year, admission in the second third of the year will require payment of two-thirds of the annual amount, and admission in the last third of the year will require payment of one-third of the annual amount.

Article VII, Section 1 of the bylaws of the Academy provides that, subject to certain provisions with respect to disability and re-tirement, each member shall pay such dues for each calendar year as may be established by the Board of Directors of the Academy. Under this authority, the board has deter-mined that dues may be partially waived for members who (a) are on temporary leave from the work force for any reason, includ-ing partial disability, and do not currently anticipate earning more than $15,000 in 2006; (b) are under age 70 and retired from active employment with earned income from any employment not exceeding $15,000 per year; (c) are unemployed and have earned


no more than $15,000 from actuarial activi-ties in 2005 and do not currently anticipate earning more than $15,000 in 2006, and who are actively seeking actuarial work or planning to reenter the profession in the future. Members eligible for partial dues waiver will pay $95 for annual dues.

Dues may be fully waived for members who (d) are totally disabled and anticipate re-maining so during 2006; (e) are age 70 or older; or (f) are serving active duty in the U.S. military, Peace Corps, or similar volun-teer service as determined by the Board of Directors.

When the circumstances that allow for a full or partial dues waiver no longer apply, the member is expected to pay the full dues for the calendar year for which the waiver applies.

Members granted partial or full waivers re-ceive the Actuarial Update monthly news-letter, Contingencies magazine, yearbook, annual meeting notices, voting material for proposed bylaws amendments, and material from the Actuarial Standards Board.

To submit a dues waiver form, please access our website at www.actuary.org or contact:

Membership Operations CoordinatorAmerican Academy of Actuaries

1100 17th Street, N.W. 7th Floor

Washington, D.C. 20036(202) 223-8196(202) 872-1948

Use of Academy Titles and

DesignationsPrecept 12 of the Code of Professional Con-duct of the American Academy of Actuaries provides that “[a]n Actuary shall make use of membership titles and designations of a Rec-ognized Actuarial Organization only in a man-ner that conforms to the practices authorized by that organization.” Annotation 12-1 of the Code defines “title” as “any title conferred by a Recognized Actuarial Organization related to a specific position within that organization,” and “designation” as “a specific reference to mem-bership status within such organization.” The Academy’s Board of Directors has authorized only the following practices for use of mem-bership titles and designations:

I. Membership DesignationsA member of the Academy may sign or oth-erwise identify himself or herself orally or in writing by using any of the following des-ignations:

A. Member of the American Acad-emy of Actuaries

B. Member, American Academy of Actuaries

C. Member, A.A.A.D. M.A.A.A.

An individual who is not a member of the Acad-emy, or who has ceased to be a member of the Academy through resignation, suspension, expul-sion, or for any other reason, may not use any Academy designation unless and until that in-dividual becomes or resumes being an Academy member.

II. TitlesA. Except as provided in Sections II (B) and (C) below, a member may include in written communications only references to titles


held within the Academy when engaged in Academy business or speaking on the Acad-emy’s behalf. A member may never speak or act on behalf of the Academy without authorization to do so from the Board of Directors, Executive Committee, or other appropriate authority.

B. Academy members who have been duly elected or appointed to the following roles may identify themselves as follows when engaged in Academy business or speaking on behalf of the Academy:

1. [Officer: (specify office)], American Academy of Actuaries

2. Member of the Board of Directors, American Academy of Actuaries

3. [Chairperson/Vice Chairperson/ Mem-ber], [(topic) Practice Council/ Council on Professionalism], American Acad-emy of Actuaries

4. [Chairperson/Vice Chairperson/ Mem-ber], [Committee/Task Force/ Work Group] on [topic], American Academy of Actuaries

5. [Staff member: (specify title)], Ameri-can Academy of Actuaries

C. A member who holds or has held one or more of the titles identified in Section II(B) above may refer to Academy offices or titles held in the following settings, but only if it is clear that the member is not purporting to speak or act on the Academy’s behalf:

1. Biographical material, such as résumés or material included in a book or ar-ticle written by or about the member;

2. Testimony in a court of law or before a legislative or regulatory body;

3. An announcement or publication of a member’s change of employment or promotion.

Board and Committee Meetings

The Board of Directors has adopted the fol-lowing policy with respect to attendance at, and participation in, Academy meetings.

1. The Academy’s meetings (including con-ference calls) are open to its members, and to guests invited by the commit-tee or task force chair, with the excep-tions of the Nominating Committee, the Budget and Finance Committee, Personnel and Compensation Commit-tee, and the Committee on Discipline, whose meetings are closed. However, portions of the Executive Committee and Board of Directors meetings may be closed for executive sessions, as well as portions of committee and task force meetings when necessary to consider confidential information where such consideration is essential to accom-plish tasks assigned to the committees or task forces by the Board of Direc-tors, the Executive Committee, or the appropriate Vice President. Committee or task force meetings may be closed to members only for the purpose of considering confidential information with the prior consent of the appro-priate Vice President or the President, and subject to any terms, conditions, or restrictions that the Vice President or President may impose. The decision to permit a committee or task force to close its meetings shall be reported to the Board of Directors at its next regu-larly scheduled meeting.

2. Academy staff attends meetings and conference calls as appropriate.

3. Members attending Academy meetings (including conference calls) should inform the committee chairperson of


their presence (in-person or on a con-ference call), and are free to observe the conduct of those meetings. They may participate in discussions only with the consent of the chairperson.

4. Conference call schedules will be listed appropriately on the Academy website. However, the Academy reserves the right to reschedule, cancel or postpone meetings and conference calls at the request of committee members. Rea-sonable efforts will be made to update meeting and conference call schedules on a timely basis.

Committee Appointment Guidelines

PreambleIn accordance with the Bylaws of the Ameri-can Academy of Actuaries, the president ap-points committees authorized by the Board of Directors. To aid the president in making such appointments, the board adopted the following guidelines with this preamble at its meeting on Oct. 31, 1980. These guide-lines reflect the board’s intention to involve as many members as possible in commit-tee activities without sacrificing continuity. However, the effectiveness of committee work is paramount, and as a consequence, strict adherence to the guidelines is not expected, particularly with respect to com-mittees that interface regularly with other professions and/or government.

Committees for which specific appointment rules are established by the board (e.g., Nominating Committee, Actuarial Standards Board) are exempt from the guidelines. Ap-pointments to joint committees and liaison appointments are subject to the guidelines applicable to standing committees, although

certain of the liaison appointments must be board members pursuant to Academy policy and agreements with other organizations.

Guidelines

1. All members of the Academy are eligible to serve on committees.

2. An officer of the Academy should not serve on any committee except in an ex officio capacity.

3. A person should be chairperson of a standing committee for no more than three years and should retire from the committee after serving as chairperson.

4. A person should remain on a standing committee for no more than three years unless such person becomes chairperson by the end of that period.

5. In general, a person should not serve concurrently on more than one standing committee.

6. In general, a person appointed to a task force or a special committee is expected to serve until the task force or special committee is discharged.


BylawsA CORPORATION ORGANIZED UNDER THE ILLINOIS GENERAL NOT FOR PROFIT CORPO-RATION ACT (ADOPTED APRIL 29, 1966, AND LAST AMENDED IN 1999)

Article IMembership

SECTION 1. Members. Individuals having membership in the Academy shall be called “members.”

Members shall be entitled to attend meet-ings of the Academy, vote, hold office, serve as elected Directors, make nominations, serve on committees, and generally exercise the rights of full membership. They are au-thorized to designate themselves as “mem-bers” of the American Academy of Actuaries and to append to their names the initials M.A.A.A.

SECTION 2. Admission to Membership. Any person may apply for membership and shall become a member by meeting the require-ments contained in this section.A. Application. Each candidate for admis-

sion must submit a written application that shall include such additional infor-mation as the Executive Committee may request.

B. Education. Each candidate shall have passed or have received credit for the ex-aminations, and/or achieved membership in a non-U.S.-based actuarial organiza-tion, as prescribed from time to time by the Board of Directors, hereinafter called the “Board.”

C. Experience. Each candidate must, at the date of application, have had at least three years of experience in responsible actuarial work. “Responsible actuarial work” is defined as work that has re-quired knowledge and skill in solving practical actuarial problems in any of the following fields: life and health insurance

involving individual policies, group insur-ance, social insurance, pensions, or prop-erty and liability insurance.

D. Resident Aliens and Nonresidents. A can-didate who is a resident alien or a non-resident of the United States must meet such other requirements as are prescribed by the Board.

E. Approval. Each application shall be act-ed upon by the Executive Committee. A candidate’s application is approved if ac-cepted by a majority of the whole Execu-tive Committee. If refused for any reason, including a rejection on the basis of evi-dence of lack of character or professional integrity, the applicant may request re-view by the Board, pursuant to such pro-cedures as may be adopted by the Board.

Article IIMeetings of the Members

There shall be an annual meeting of the members each fall at such time and place as the Board shall designate.

Special meetings may be called by the Board. Upon request of not less than 5 per-cent of the members, the President shall call a meeting of the members. At all meetings 50 members shall constitute a quorum. No-tice of a meeting, specifying the place, date, and hour of the meeting, shall be given not less than 40 nor more than 50 days before each meeting.

Article IIIBoard of Directors

SECTION 1. Composition. The Board shall consist of 29 Directors, comprising the nine Officers, the two immediate Past Presidents, and 18 elected Directors.

SECTION 2. Election and Term of Office. A. Special Directors. The Board shall designate

a number of seats on the Board, not to ex-ceed eight, to be filled by a class of special Directors consisting of representatives of


other U.S. actuarial organizations whose presence on the Board is deemed helpful to the Academy. Special Directors shall be elected by majority vote of the whole Board and shall serve for a period of two years. If a vacancy occurs among the special Directors, the vacancy may be filled for the remain-der of the unexpired term by majority vote of the whole Board. The term of office of a special Director shall begin at the close of the annual meeting of the Academy in the calendar year of the election and shall con-tinue until the close of the annual meeting at the end of the term for which the special Director was elected.

B. Regular Directors. Elected Directors who are not special Directors shall be regular Directors. Each year the members shall elect a number of regular Directors to bring the total number of elected Di-rectors to 18. Candidates receiving the greatest number of votes shall be elected. Such regular Directors shall serve for a period of three years. A retiring regular Director, other than one who was elected to fill a vacancy whose term as a regular Director expires, shall not be eligible for re-election as a regular Director at that time. A Past President whose ex officio membership on the Board as Past Presi-dent expires shall not be eligible for elec-tion as a regular Director at that time. If a vacancy occurs among the regular Direc-tors, including a vacancy created by the election of a regular Director to an office or to the position of special Director, the vacancy may be filled for the remainder of the unexpired term by majority vote of the whole Board. The term of office of a regular Director shall begin at the close of the annual meeting of the Academy in the calendar year of the election and shall continue until the close of the an-nual meeting at the end of the term for which the regular Director was elected.

SECTION 3. Meetings. There shall be an an-nual meeting of the Board within 60 days

prior to the annual meeting of the Acad-emy. Special meetings of the Board shall be called whenever the President or at least five members of the Board so request.

Meetings of the Board may be held either within or outside the state of Illinois. Notice of the meetings of the Board shall be given not less than 10 days nor more than 30 days before the meeting, except in the event of a meeting of the Board following the annual meeting of the Academy, in which event newly elected Directors shall be given notice of such meeting of the Board as promptly as possible. Such notice to newly elected Direc-tors may be given personally, by telephone, by mail, or by facsimile transmission.Any action required to be taken at a meeting of the Board may be taken without a meet-ing if a consent in writing, setting forth the action so taken, shall be signed by all of the members of the Board.

SECTION 4. Quorum. At meetings of the Board, a majority of the members of the Board shall constitute a quorum.

SECTION 5. Duties and Powers. The Board shall have, in addition to the powers and authority expressly conferred upon it by these Bylaws, the right, power, and author-ity to exercise all such powers and to do all such acts and things as may be appropriate to carry out the purposes of the Academy. Without prejudice to the general powers so conferred, the Board shall have the follow-ing specific powers:

a. To act in accordance with the provisions of the Articles of Incorporation of the Academy and the laws of the state of Il-linois.

b. To establish the location of the offices of the Academy.

c. To invest and administer the funds of the Academy.

d. To arrange an annual audit of the ac-counts of the Secretary-Treasurer.


e. To prescribe examinations and other re-quirements for admission, as provided in Article I, Section 2, of the Bylaws.

f. To elect the Officers of the Academy.g. To authorize such committees as it may

deem necessary for the conduct of the affairs of the Academy.

Article IVExecutive Committee

During any interim between meetings of the Board, the business of the Academy shall be conducted by an Executive Committee comprising the Officers and the immediate Past President. The Executive Committee shall have such powers as may be provided by these Bylaws or as may be delegated to it by the Board, except the specific powers enumerated (b), (d), (e), (f), and (g) in Sec-tion 5 of Article III.

Article VOfficers

SECTION 1. Officers. The Officers of the Academy, all of whom shall be members, shall consist of a President, a President-Elect, six Vice Presidents, and a Secretary-Treasurer.

SECTION 2. Election and Term of Office. At each annual meeting of the Board, the Direc-tors present, by a vote of a majority of the whole Board, shall elect, separately and in the order named, a President-Elect, three or more Vice Presidents, and a Secretary-Treasurer.

At the annual meeting of the Board, if ei-ther (a) the President-Elect has succeeded the President and has served in that capac-ity for six months or more by reason of the office of President becoming vacant or (b) the office of the President-Elect is vacant, except in the case where the President-Elect has succeeded to the office of the President and has served in that capacity for less than six months, the Directors, by a vote of a majority of the whole Board, shall, prior to the election of the President-Elect, elect a

President to serve from the close of the first subsequent annual meeting of the Academy until the close of the second subsequent an-nual meeting of the Academy.

Except as hereinafter provided, the Presi-dent-Elect, having been so elected at an annual meeting of the Board, shall com-mence the term as President-Elect at the close of the first subsequent annual meet-ing of the Academy and shall automatically succeed the President at the close of the second subsequent annual meeting of the Academy, and shall serve as the President until the close of the third subsequent an-nual meeting of the Academy. In the event the office of President becomes vacant, the President-Elect shall automatically suc-ceed to fill the vacancy for the unexpired term. A President-Elect who so succeeds the President and serves in that capacity for less than six months prior to the close of the first subsequent annual meeting of the Academy following succession to the Presi-dency shall further serve as President until the close of the second subsequent annual meeting of the Academy.

The term of Vice President shall be two years. The term of each Vice President elected at each annual meeting of the Board shall be from the close of the first subsequent an-nual meeting of the Academy until the close of the third subsequent annual meeting of the Academy. In the event of a vacancy in the office of Vice President, the Board may elect a replacement for the remainder of the vacancy of that office. Said replacement may thereafter be eligible for re-election as a Vice President at the meeting at which the term expires.

A retiring Vice President is not otherwise eligible for re-election as a Vice President at the meeting at which the term expires.

Except as provided above, a retiring Presi-dent shall thereafter be permanently ineli-


gible for election for another term as Presi-dent or President-Elect.

A retiring Vice President shall not be eligible for re-election as a Vice President at the meeting at which the term expires.

Each Officer shall hold office for the term elected and until a successor shall have been elected.

In the event of vacancy in the office of both the President and President-Elect, the Board shall by majority vote of the whole Board elect a member to fill the vacancy for the unexpired term of the President.In the event a vacancy occurs among the Vice Presidents, or in the office of Secre-tary-Treasurer, the Board shall by majority vote of the whole Board elect a member to fill the vacancy for the unexpired term.

Article VIDuties of Officers

SECTION 1. President. The President shall preside at the meetings of the Board and of the Academy, shall appoint committees authorized by the Board, and may sign con-tracts or other instruments that the Board has authorized to be executed.

SECTION 2. President-Elect. The President-Elect shall have such duties as may be as-signed by the President or by the Board. In the absence of the President, or in the event of the President’s inability or refusal to act, the President-Elect shall perform the duties of the President’s office.

SECTION 3. Vice Presidents. Each of the Vice Presidents shall have such duties as may be assigned by the President or by the Board.

SECTION 4. Secretary-Treasurer. The Secre-tary-Treasurer shall record and file minutes of all meetings of the Board, give all notices, be custodian of the corporate records of the

Academy, and in general shall perform all customary duties incident to the office of Secretary-Treasurer. If the President is ab-sent or unavailable, the Secretary-Treasurer may sign, with any other person authorized by the Board, contracts or other instru-ments that the Board has authorized to be executed.The Secretary-Treasurer shall also keep a register of the members, have charge of the preparation and publication of any yearbook that may be published, have general super-vision of any arrangements for holding ex-aminations, have charge and custody of all funds and securities, collect dues, pay bills, prepare financial statements, and in general perform all customary duties incident to the office of Secretary-Treasurer. The Secretary-Treasurer shall give a bond for the faith-ful discharge of all such duties, the cost of which shall be paid by the Academy.

Article VIIFinances and Contracts

SECTION 1. Dues. Except as hereinafter pro-vided, each member shall pay such dues for each calendar year as may be established by the Board. Such dues shall be payable as of January 1 of the calendar year. At the time when dues are payable, any member who has become totally disabled or who, having attained an age to be selected by the Board, and having retired from active work or who has attained age 70, so notifies the Secre-tary-Treasurer in writing shall be granted exemption from the payment of dues by the Executive Committee. In addition, any member who (a) is expected to earn no sig-nificant income for the calendar year from actuarial activities, and (b) is within a class of members eligible for dues waiver as de-termined by the Board shall be granted ex-emption from the payment of dues by the Executive Committee.

It shall be the duty of the Secretary-Trea-surer to cause to be notified by mail any


member whose dues may be six months in arrears and to accompany such notice by a copy of this Section. If dues remain unpaid, such person shall, on the date that falls three months after the date of mailing such notice, cease to be a member of the Acad-emy for all purposes other than with respect to any penalty or other action determined under disciplinary procedures as provided in Article IX, relating to conduct prior to such date. Reinstatement as a member shall be subject to such conditions as the Board may prescribe.

SECTION 2. Publications. The Board shall determine the extent of distribution of publications of the Academy and the fees or prices to be charged any classes of re-cipients.

SECTION 3. Contracts. The Board may au-thorize any Officer or agent to enter into any contract or execute and deliver any in-strument in the name of or on behalf of the Academy.

SECTION 4. Checks. All checks, drafts, or other orders for a payment of money, notes, or other evidences of indebtedness shall be signed by such Officer or agent of the Academy as shall from time to time be de-termined by the Board.

SECTION 5. Deposits. All funds of the Acade-my not otherwise employed or invested shall be deposited to the credit of the Academy in such banks, trust companies, or other de-positories as the Board may select.

Article VIIIResignation of Members

Any member may at any time file a resigna-tion in writing with the Secretary-Treasurer, and, unless it is rejected by the Executive Committee, it shall become effective as of the date it was filed. The Executive Com-mittee may reject a resignation only if a

complaint or charge is pending against the member or if a complaint or charge is filed within 60 days after the date that the mem-ber’s attempted resignation is filed. A mem-ber whose resignation is rejected by the Ex-ecutive Committee may appeal in writing to the Board. The Board may affirm or set aside an Executive Committee decision to reject a member’s resignation by a majority vote of the members of the whole Board.

Notwithstanding the foregoing, the Board may in its discretion permit the resignation of a member against whom a complaint or charge is pending. The Board, on written ap-plication of any member who has resigned, may reinstate such member subject to such conditions as it may prescribe.

Article IX Public Discipline

SECTION 1. Complaints and Referrals.

A. Complaints concerning alleged violations of the Academy’s Code of Professional Conduct, and all questions that may arise as to the conduct of a member, in the member’s relationship to the Academy or its members, or in the member’s profes-sional practice, or affecting the interests of the actuarial profession, constitute matters for serious consideration.

B. Such complaints and questions shall be referred to the national organization re-sponsible for professionwide counseling and discipline in the nation where the action occurred: the Actuarial Board for Counseling and Discipline (ABCD) in the United States and in any other country where the Academy has not executed a cross-border discipline agreement with a foreign national actuarial organization, and the appropriate foreign national actuarial organization with which the Academy has executed a cross-border discipline agreement (for example, the Canadian Institute of Actuaries in Can-


ada). The Academy will publish annually in its Yearbook a list of foreign national actuarial organizations with which it has executed a cross-border discipline agree-ment.

SECTION 2. Consideration of Public Disci-plinary Action.A.The President shall appoint a six-person

Disciplinary Committee from among the current or former members of the Board who, at the time of their appointment, have served on the Board within the past five years to consider and act upon a recommendation from the ABCD or the appropriate foreign national actuarial organization for public discipline of an Academy member.

B. Public disciplinary action includes a pub-lic reprimand, suspension of Academy membership, or expulsion from the Acad-emy.

C. The member who is the subject of a pub-lic disciplinary recommendation from the ABCD or the appropriate foreign national actuarial organization shall have the right to appear personally and by counsel (at the member’s expense) before the Dis-ciplinary Committee to explain why that recommendation should not be followed. The role of the member’s counsel shall be limited to advising the member and ar-ticulating appropriate legal objections; the role of the Disciplinary Committee’s counsel shall be similarly limited.

D. The member involved shall be notified not less than 45 days in advance as to the time, date, and place where the Disciplin-ary Committee will consider the matter. The notification may be made by certi-fied mail or in such other manner as the Disciplinary Committee Chairperson may direct. The time limit may be waived by mutual agreement of the parties.

E. An action of the Disciplinary Committee to publicly reprimand, suspend, or expel a member requires an affirmative vote of two-thirds of the whole membership of

the Disciplinary Committee.F. An action by the Disciplinary Committee

to publicly reprimand, suspend the mem-bership of, or expel a member is effective 45 days after the date of the action, if the member does not appeal the action to the Appeal Panel as provided in Sec-tion 3 below, and, in the event of such an appeal, the action is effective on the date when the appeal is decided by the Appeal Panel.

SECTION 3. Appeals.A member against whom an order of pub-lic reprimand, suspension, or expulsion has been rendered shall, upon application to the president within 45 days after the action of the Disciplinary Committee, be entitled to appeal under the following conditions:

A. The President shall appoint a six-person Appeal Panel from among the members of the Board of Directors (except as pro-vided in subsection 2 below) to consider and act upon the member’s appeal. The Appeal Panel shall consist of:

1. A chairperson who is the presi-dent, the president-elect, the immediate past president, or the secretary-treasur-er;

2. The chairperson of the Disciplin-ary Committee (even if that person is no longer a member of the Board of Direc-tors); and

3. Four members of the Board of Directors who did not participate on the Disciplinary Committee. Officers identi-fied in Section 3(A)(1) who do not Chair-personthe Appeal Panel may participate as members of the Appeal Panel.

B. The notice of appeal shall be in writing and shall stipulate that the appealing member consents to the mailing to the members of the Appeal Panel of a tran-script and all applicable evidence in a form approved by the Disciplinary Com-mittee.

C. All rights and privileges of membership


shall be retained during the pendency of the appeal.

D. The member may appear personally and by counsel (at the member’s expense) before the Appeal Panel to explain why the action of the Disciplinary Committee should be reduced or set aside. The role of the member’s counsel shall be limited to advising the member and articulating ap-propriate legal objections; the role of the Appeal Panel’s counsel shall be similarly limited.

E. The decision of the Disciplinary Commit-tee may be affirmed, reduced, or set aside by a majority of the Appeal Panel.

F. The member involved shall be notified not less than 45 days in advance as to the time, date, and place where the Appeal Panel will consider the matter. The noti-fication may be made by certified mail or in such other manner as the chairperson of the Appeal Panel may direct. The time limit may be waived by mutual agree-ment of the parties.

SECTION 4. Reinstatement.An individual who has been expelled or suspended from the Academy may be rein-stated only through an action of the Board of Directors.

SECTION 5. Confidentiality of Proceedings.Except as otherwise provided in these By-laws or by waiver of the person under in-vestigation, all proceedings under this Ar-ticle shall be confidential and kept secret. If the person discloses any aspect of these confidential proceedings, the Academy may research the source and manner of the dis-closure, and reserves the right to respond to such disclosure by providing factual infor-mation about the proceedings.

SECTION 6. Notifications.A. The Academy shall notify Academy mem-

bers in all instances in which a member is subject to public discipline. At the same time notification is given to the members,

the Academy shall also give notice of the public discipline to all other actuarial or-ganizations of which the individual is a member and to other organizations, in-cluding government entities, that, in the opinion of the Disciplinary Committee or the Appeal Panel, should also receive no-tice of the action. The Academy may also give notice of public discipline to such newspapers or journals as it may select.

B. If the case arises from a written com-plaint, notice of the disposition of the case shall be furnished to the complain-ant.

C. In the case of an action to publicly rep-rimand, suspend, or expel a member, the notification should take place within a reasonable period of time after the action has taken effect as described in Section 2(F) above.

D. In the event of subsequent reinstatement of an expelled or suspended member, the Academy shall give notice of such action to all members and also to entities previ-ously advised by the Academy of the ex-pulsion or suspension.

SECTION 7. Procedures.The Board of Directors may establish pro-cedures for implementation of this Article that are not inconsistent with this Article.

Article XActuarial Board for Counseling

and DisciplineSECTION 1. Establishment and Purposes.A. There shall be established within the

Academy an entity to be known as the Actuarial Board for Counseling and Dis-cipline (ABCD). Upon delegation of ap-propriate authority from a participating actuarial organization and acceptance of that delegation by the ABCD, the ABCD will be authorized:

1. To consider all complaints con-cerning alleged violations or informa-tion suggesting possible violations of


the applicable Code(s) of Professional Conduct and all questions that may arise as to the conduct of a member of a participating actuarial organiza-tion in the member’s relationship to the organization or its members, in the member’s professional practice, or af-fecting the interests of the actuarial profession.

2. To counsel actuaries concerning their professional activities related to the applicable Code(s) of Professional Conduct in situations where the ABCD deems counseling appropriate.

3. To recommend a disciplinary ac-tion with respect to an actuary to any participating organization of which that actuary is a member.

4. To mediate issues between mem-bers of participating actuarial organi-zations, or between such members and the public, for the purpose of infor-mally resolving issues concerning the professional conduct of such mem-bers.

5. To respond to requests for guid-ance regarding professionalism from members of the participating organi-zations.

B. The ABCD is authorized to establish Rules of Procedure and operating guidelines not inconsistent with the requirements of this Article. Such Rules of Procedure shall provide that the subject of an inquiry will be given the following:1. Notice of the inquiry along with the

factual basis for the inquiry and an op-portunity to comment on the matter before the ABCD determines whether an investigation should be initiated.

2. Notice of the ABCD’s decision to re-fer the inquiry to Investigators, their names, and an opportunity to object for cause in writing to any of them.

3. The opportunity to comment on an Investigative Report before the ABCD uses the Report to vote on disposition of the inquiry.

4. Reasonable notice of a hearing to be conducted regarding the actuary’s work and/or conduct, including the is-sues for inquiry and the date, time, and place of the hearing.

5. Within a reasonable period of time prior to a hearing, the names of any witnesses whose testimony the ABCD expects to consider and copies of case-specific documents not previously pro-vided to the subject of the inquiry that the ABCD expects to consider.

6. Notice and a reasonable opportunity to respond to additional relevant, mate-rial case-specific documents and wit-nesses that the ABCD first learns of during a hearing, if the ABCD intends to consider such. The notice shall in-clude a copy of such documents and the names and last known addresses of witnesses.

7. The right to assistance of counsel dur-ing a hearing, including the right to seek and receive advice from counsel and to have counsel articulate appro-priate legal objections.

8. Prompt notification of the results of an ABCD hearing after they have been determined and formulated. The ABCD shall expose, for comment, proposed revisions of its Rules of Procedure to the profession or to membership or-ganizations for publication to their members.

SECTION 2. Members and Appointments.A. The ABCD shall consist of nine persons

appointed from the membership of the participating organizations. Appoint-ments will usually be made for three-year terms, but appointments for shorter terms may be made to assure that the terms of one-third of the members will expire each year. A member may serve no more than two consecutive terms.

B. Members of the ABCD shall be broadly representative of all areas of actuarial practice. They shall be appointed by, and


serve at the pleasure of, a Selection Com-mittee composed of the Presidents and Presidents-Elect of the participating or-ganizations. The President of the Acad-emy shall serve as Chairperson of the Se-lection Committee.

C. If a vacancy arises among the members of the ABCD, the Selection Committee shall designate a replacement to fill out the remainder of the term. The replacement will complete that term, and may be re-appointed for one additional consecu-tive three-year term. When a full-term or replacement member has attended a hearing as an ABCD member, such mem-ber may serve beyond his or her term of appointment solely for the purpose of participating in the ABCD’s disposition of that matter.

D. Where three or more members of the ABCD have an actual or apparent conflict of interest with regard to a particular matter, with the result that a quorum of the ABCD cannot practicably be convened to consider the matter, the Selection Committee may, in response to a request from the ABCD, appoint enough special members to the ABCD to form a quorum to consider that matter. The special mem-bers shall consider only the matter(s) for which appointed, and the term of each such special member shall end at the conclusion of the ABCD’s consideration of such matter(s).

SECTION 3. Officers. The Officers of the ABCD shall consist of the Chairperson and two Vice Chairpersons, who shall be ap-pointed annually from among the members of the ABCD by the Selection Committee.

SECTION 4. Meetings and Conduct of Busi-ness. The ABCD shall meet at least once each year. Meetings may be called by the Chairperson or at the request of at least three members. Six members of the ABCD shall constitute a quorum. Meetings may be conducted in person or via telephone. In

the event that neither the Chairperson nor a Vice Chairperson is able to participate at a duly called meeting where a quorum is present, the members may, by a majority of those participating, select a Chairperson Pro Tem for that meeting.

SECTION 5. Procedures.A. For any matter described in Section 1.A.1

that comes to the attention of the ABCD, the Chairperson and the two Vice Chair-persons may by majority vote agree to: (1) dismiss the matter, (2) authorize a me-diator to attempt to resolve the matter, or (3)authorize a review of the matter.

B. An actuary whose activities are the sub-ject of ABCD inquiry is referred to as a “subject actuary.”

C. To review a matter, the Chairperson shall appoint a primary Investigator

and may appoint additional Investigators. ABCD members shall not be Investiga-tors.1. The Investigator(s) shall investigate ac-

tivities which may involve violations of the applicable Code(s) of Professional Conduct. The Investigator(s) shall then prepare an Investigative Report for the ABCD, which contains the results of the investigation.

2. The Investigator(s) shall follow appli-cable Rules of Procedure and operating guidelines established by the ABCD, which shall not be inconsistent with the provisions of this Article.

D. The Chairperson may designate individuals with special expertise in various specialty areas to serve as Advisers to the ABCD. Investigator(s) and the ABCD may con-sult confidentially with such Advisors who have information or experience relevant to a matter under consideration.

E. Following receipt of the Investigative Re-port, the ABCD shall determine by major-ity vote whether to (1) dismiss the matter; (2) counsel the actuary; or (3) schedule, in accordance with the Rules of Procedure described in Section 1.B of this Article, a


fact-finding hearing before the ABCD.F. In any hearing before the ABCD:

1. The subject actuary shall have the right to appear personally, to examine the evidence to be considered by the ABCD, to question witnesses appearing at the hearing, and to present witnesses and evidence.

2. The subject actuary may be accom-panied by counsel, at no expense to the ABCD. The counsel’s role in such instance shall be defined by the Rules of Procedure adopted by the ABCD, subject to the requirements of Sec-tion 1.B.7 of this Article. The role of counsel for the ABCD shall be similarly defined.

3. The ABCD shall decide all questions of evidence at the hearing.

4. A written transcript shall be made of the proceedings and a copy made available to the subject actuary.

G. Following the conclusion of the hearing and based on the evidence (including testimony), only those ABCD members participating in the hearing shall, by af-firmative vote of five or more members, determine to (1) dismiss the matter; (2) counsel the actuary; or (3) recommend discipline to the subject actuary’s mem-bership organization(s), including the form of such discipline: private repri-mand (if permitted by the membership organization’s bylaws or rules), public reprimand, suspension, or expulsion. If the ABCD believes it would be beneficial, it may also counsel an actuary for whom discipline is recommended.

If the ABCD recommends discipline, the ABCD shall prepare a written report addressed to each participating orga-nization of which the subject actuary is a member. The report shall identify the precepts of the applicable Code(s) of Pro-fessional Conduct that the ABCD believes to have been violated, state the nature of the violations, and make a recommenda-tion as to the form of discipline. The re-

port shall be accompanied by a transcript of the hearing and copies of all docu-ments considered at the hearing. A copy of the report and accompanying material shall be provided to the subject actuary.

SECTION 6. Counseling. The ABCD shall counsel a subject actuary when the ABCD determines counseling to be more appropri-ate than dismissal of a matter. The ABCD may also counsel a subject actuary for whom it recommends discipline. Counseling shall not be considered a disciplinary action.

SECTION 7. Staff. The ABCD will utilize the staff of the Academy for necessary legal, logistical, and technical support and may retain outside counsel for assistance, as needed.

SECTION 8. Finances.A. The finances of the ABCD will be account-

ed for separately within the Academy system of accounts. The ABCD will submit a budget request to the Secretary-Trea-surer, listing all planned income sources and potential expenses, in such form and in such detail as is mutually determined by the Secretary-Treasurer and the ABCD. The Board of the Academy will consider this request when adopting its annual budget and will make provision within such budget for the operating expenses of the ABCD.

B. The ABCD will have discretion with regard to the expenditure of all funds allocated to it, subject only to such accounting and audit requirements as may be mutually determined by the Secretary-Treasurer and the ABCD.

SECTION 9. Confidentiality. Except as oth-erwise provided in these Bylaws, all pro-ceedings under this Article shall be kept confidential by the ABCD, its staff, investi-gators, and advisers. This requirement as to confidentiality shall not preclude the ABCD from:


A. Advising complainants and subject actu-aries about the progress and outcome of matters under consideration;

B. Reviewing previously closed files as they may relate, in any manner, to the consid-eration of a new matter before it;

C. Accepting a bona fide waiver of confiden-tiality from a subject actuary and disclos-ing information pursuant to that waiver that would otherwise be kept confidential under this section, subject to such terms and conditions as the ABCD deems neces-sary to protect the confidentiality rights of other parties and the integrity of the ABCD process.

SECTION 10. Communications. The ABCD shall issue an annual report that will in-clude a description of its activities for the prior fiscal year, including commentary on the types of cases pending, resolved, and dismissed. The ABCD may also disseminate educational materials to assist actuaries in understanding the application of the Code(s) of Professional Conduct in various situations that may arise. These reports and educational materials shall not reveal any confidential information. The ABCD shall also report quarterly to the President of each participating organization concerning inquiries, issues, and counseling activities related to members of that organization.

Article XIActuarial Standards Board

SECTION 1. Establishment and Purposes. There shall be established within the Acad-emy an entity to be known as the Actuar-ial Standards Board (ASB), whose purposes shall be to:A. (i) Expose, (ii) promulgate or adopt, and

(iii) publish actuarial Standards of Prac-tice, within its sole discretion and pursu-ant to such procedures as it deems appro-priate, in all areas of actuarial practice, subject to the specific requirements of this article.

B. Provide continuous review of existing Standards of Practice and determine whether they are in need of amendment, alteration, expansion, or elimination.

C. Direct and manage the development of actuarial Standards of Practice by its op-erating committees in all areas of actu-arial practice.

SECTION 2. Members and Appointments.A. The ASB shall consist of nine members,

each of whom shall be appointed for three-year terms. No individual may serve more than two consecutive terms on the ASB. Terms of membership shall be stag-gered, so that one-third of the members are appointed annually.

B. Members of the ASB shall be broadly rep-resentative of all areas of actuarial prac-tice. They shall be appointed by and serve at the pleasure of a Selection Commit-tee composed of the Presidents and the Presidents-Elect of the organizations that participate in the ABCD, or their succes-sor organizations. The President of the Academy shall serve as Chairperson of the Selection Committee. The Selection Committee shall annually appoint the Chairperson of the ASB. An individual ap-pointed Chairperson may not serve more than two consecutive terms as Chairper-son. If a vacancy arises among the mem-bers of the ASB, the Selection Commit-tee shall designate a replacement. The replacement will complete that term, and may be reappointed for one additional consecutive three-year term.

SECTION 3. Meetings. The ASB shall meet at least four times annually. Additional meet-ings of the ASB shall be called whenever the Chairperson or at least four members of the ASB so request. At meetings of the ASB, two-thirds of the members of the ASB shall constitute a quorum. At least six affirmative votes are required for the ASB to expose, promulgate, or adopt actuarial Standards of Practice.


SECTION 4. Officers.A. Officers of the ASB shall consist of a

Chairperson and two Vice Chairpersons. The Vice Chairpersons shall be appointed annually from among the members of the ASB by the Chairperson with the consent of the ASB.1. One Vice Chairperson shall be the pre-

siding officer in the absence of the Chairperson and shall have such other duties as may be assigned by the Chair-person.

2. The other Vice Chairperson shall moni-tor the disposition and be responsible for the authorization of expenditure of all funds associated with the ASB.

B. The Chairperson of the ASB shall preside at meetings of the ASB and shall desig-nate operating committee Chairpersons with the consent of the ASB. Members of the operating committees shall be appointed by each operating commit-tee Chairperson with the consent of the ASB.

SECTION 5. Committees. The ASB shall es-tablish operating committees to prepare and draft Standards of Practice for consid-eration by the ASB. The number and mem-bership of such committees shall be deter-mined by the ASB. The ASB may establish additional committees, subcommittees, or task forces as it deems appropriate to carry out administrative or advisory functions in support of its operations.

SECTION 6. Finance.A. Financial activities pertaining to the ASB

will be accounted for separately within the Academy system of accounts. The ASB will submit a budget request to the Secretary-Treasurer, listing all planned in-come sources and potential expenses, in such form and in such detail as are mutu-ally determined by the Secretary-Treasur-er and the ASB. The Academy Board will consider this request when adopting the

Academy annual budget and will make provision within such budget for ASB op-erating expenses.

B. The ASB will have discretion with regard to the expenditure of all funds allocated to it, subject only to such accounting and audit requirements as are mutually deter-mined by the Secretary-Treasurer and the ASB.

SECTION 7. Staff. The ASB will utilize the staff of the Academy for all support, within the budgetary constraints of the ASB, and the Academy will make available to the ASB such staff support as may be requested. Costs for such staff support, including over-head expenses ascertained pursuant to a formula mutually determined by the Secre-tary-Treasurer and the ASB, will be included in the ASB budget.

SECTION 8. Communications with the Actu-arial Profession. The ASB shall issue an an-nual report that will include a description of its activities for the prior fiscal year, includ-ing commentary on its standards activities, administrative matters, and finances. The ASB shall cooperate with duly constituted actuarial authorities charged with enforc-ing standards of professional practice, and respond to inquiries regarding actions of the ASB, including the interpretation of standards promulgated or adopted by the ASB.

Article XIINotice

The requirement that notice be given to members or other persons shall be satisfied when a letter has been deposited in a U.S. Postal Service mailbox addressed to the last known address of such person.

Article XIIIIndemnification

Each person who at any time shall serve or shall have served as an Officer, member of


the Board, committee member, or member of any disciplinary board of the Academy (and any such person’s heirs, executors, ad-ministrators, and personal representatives) shall be indemnified by the Academy against all costs and expenses (including but not limited to legal fees, amounts of judgments paid, and amounts paid in settlement) rea-sonably incurred in connection with the de-fense of any claim, action, suit, or proceed-ing, whether civil, criminal, administrative, or other, in which one or more of them may be involved by virtue of such person being or having been an Officer, member of the Board, committee member, or member of any disciplinary board of the Academy, or in connection with any appeal therein; pro-vided, however, that in the event of a settle-ment the indemnification herein provided shall apply only when the Board approves such settlement; and provided further that such indemnity shall not be operative with respect to any matter as to which such per-son shall have been finally adjudged liable in such claim, action, suit, or proceeding on account of willful misconduct.

The rights accruing to any person under this Article shall be without prejudice to any rights or benefits given by the Board incon-sistent therewith in special cases and shall not exclude any other rights or benefits to which the individual may be lawfully en-titled.

Article XIVUse of Financial Resources:

DissolutionThe funds of the Academy shall be devoted exclusively to the purposes stated in para-graph 5 of the Articles of Incorporation. No part of the net earnings of the Academy shall ever inure in whole or in part to the benefit of any member or individual. If the Academy is dissolved, all of its remaining assets shall be transferred to one or more organizations organized and operated ex-

clusively for purposes similar to those of the Academy.

Article XVAmendments

Administrative, editorial, and technical amendments to the Bylaws that do not in-volve questions of policy or affect the sub-stantive rights of the Academy’s members may be made by a vote of two-thirds of the Directors present at a duly convened meet-ing of the Board. Otherwise, amendments to the Bylaws may be proposed either by a vote of two-thirds of the Directors present at a duly convened meeting of the Board or by written request of not less than 3 percent of the members. The Board shall specify a reasonable period of time within which the proposed amendment shall be transmitted by the Secretary-Treasurer to the members by mail, and the time for votes to be mailed by the members to the Secretary-Treasurer. Such proposed amendment shall be accom-panied by an appropriate discussion of the issues, and it shall become effective 10 days following the end of the voting period upon the affirmative vote of two-thirds of the members voting.


North American Actuarial Council

Working Agreement(Pending adoption by the

North American Actuarial Council)

This Working Agreement sets forth the cooperative goals of the American Academy of Actuaries (Academy), the American Soci-ety of Pension Professionals and Actuaries (ASPPA), the Asociacion Mexicana de Ac-tuarios (AMA), the Asociacion Mexicana de Actuarios Consultores (AMAC), the Canadian Institute of Actuaries (CIA), the Casualty Ac-tuarial Society (CAS), the Colegio Nacional de Actuarios (CONAC), the Conference of Consulting Actuaries (Conference), and the Society of Actuaries (SOA), collectively re-ferred to as the Participating Organizations.

In order to: foster cooperation among the Participating Organizations consistent with their individual missions as described below; eliminate unnecessary duplication of effort and activity between the Participat-ing Organizations (thereby maximizing the efficient use of the Participating Organiza-tions’ resources); encourage mutual recog-nition and cross-border discipline; and en-hance the image, growth and reputation of the actuarial profession in North America, the Participating Organizations agree to participate in the North American Actuarial Council (“NAAC”) as described in this Work-ing Agreement.

The Participating Organizations agree to broadly publicize this Agreement (e.g., publish it in their Yearbooks and on their websites).

I. Missions of the Participating OrganizationsEach of the Participating Organizations

operates to further its self-identified mission. The missions of the Participating Organizations may be broadly summarized as follows:

Academy: nationally and internationally, to represent the entire U.S. actuarial profession in the formulation of public policy and support U.S. actuaries in fulfilling their related respon-sibilities; to encourage the professionalism of U.S. actuaries by fostering the establishment, communication, maintenance, and enforce-ment of high professional standards; and to represent and advance the U.S. actuarial pro-fession and increase the public’s recognition of the U.S. actuarial profession’s value.

ASPPA: To educate all retirement plan professionals and to preserve and enhance the employer-based retirement system as an essential part of a national retirement in-come policy in the United States.

AMA: To support the Mexican actuarial profession in maintaining high standards of professional integrity and technical exper-tise and, thereby, promote the dignity of the profession and enhance the public’s recog-nition of the profession’s value.

AMAC: To advance the quality of actu-arial consulting practice in Mexico by pro-viding continuing education and business support services to Mexican actuaries in consulting practice.

CIA: As the national organization of the Canadian actuarial profession, to serve the public through the provision by the profession of actuarial services and advice of the high-est quality by: representing the Canadian ac-tuarial profession in the formulation of public policy; promoting the advancement of actu-arial science and sponsoring programs for the education and qualification of CIA members and prospective members; ensuring that ac-tuarial services provided by its members meet accepted professional standards; and assisting actuaries in Canada in the discharge of their professional responsibilities.

CAS: To advance the body of knowledge of actuarial science applied to property, casu-alty, and similar risk exposures by: providing basic and continuing education; conducting research; establishing and maintaining high standards of conduct and competence for its members; communicating with the pub-


lics affected by insurance; and increasing the awareness of actuarial science.

CONAC: To serve as the professional mem-bership organization for all the actuaries li-censed to practice in Mexico, regardless of their specialty area; to advise the Mexican government concerning public policy matters with actuarial implications; and to foster actu-arial education and research in Mexico.

Conference: To advance the quality of actuarial consulting practice, support the needs of consulting actuaries, and represent their interests.

SOA: The Society of Actuaries is an edu-cational, research, and professional organi-zation dedicated to serving the public and Society members. Its mission is to advance actuarial knowledge and to enhance the ability of actuaries to provide expert advice and relevant solutions for financial, busi-ness, and societal problems involving uncer-tain future events. The vision of the Society of Actuaries is for actuaries to be recognized as the leading professionals in the model-ing and management of financial risk and contingent events. The Society also works to anticipate future member needs through environmental scanning, strategic planning, and dynamic strategy management.

Each of the Participating Organizations takes whatever measures it deems neces-sary, appropriate, or desirable to attract, re-cruit, and serve its individual members. This agreement is not intended, nor should it be construed, to restrict in any way the inde-pendent business decisions of the Partici-pating Organizations but, rather, to docu-ment the Participating Organizations’ desire to cooperate in the service of the North American actuarial profession consistent with their own missions and purposes.

II. The North American Actuarial CouncilA. Purpose of NAAC

The Participating Organizations jointly acknowledge that:

•Theoperatingenvironments inthethreeNorth American countries are very differ-ent,

•TheParticipatingOrganizations’membersexpect the organizations to leverage re-sources and take appropriate advantage of synergies, and

• Increased information sharing and dia-logue among the Participating Organiza-tions has the potential to yield collective insights valuable to each organization.

Accordingly, the Participating Organiza-tions define NAAC’s purpose as follows:

1. NAAC is to be a forum where networking occurs and camaraderie is built among the leaders of the North American actu-arial organizations.

2. NAAC is to be a forum for information sharing on current and potential activi-ties among the North American actuarial organizations.

3. NAAC is to be a source of knowledge in identifying conditions, trends, assump-tions, and key issues affecting the North American actuarial profession and bench-marking best practices among member organizations.

4. NAAC is to be a catalyst for dialogue on key issues facing the North American ac-tuarial profession.

5. NAAC is to be a facilitator of opportu-nities for leveraging of resources across organizations.

In fulfilling its purpose, NAAC shall abide by the following guiding principles:

• The conditions, cultures, and perspec-tives of each individual country and their member organizations will be respected


and valued.•Theautonomyofeachmemberorganiza-

tion to pursue its mission and purpose will be preserved.

• The public interest will always be a pri-mary consideration.

• The best interests of the profession willalways be considered.

B. MembersThe North American Actuarial Council

(NAAC) is composed of up to two officers of each Participating Organization. One of the two officers shall be the President of the Participating Organization. The other officer shall be the President-Elect of the Participating Organization unless the Participating Organization appoints another officer it deems more appropri-ate. If a designated officer of a Partici-pating Organization is unable to attend a meeting of NAAC, the Participating Orga-nization may designate another appropri-ate representative to attend the meeting in that officer’s stead. The Executive Di-rectors of the Participating Organizations attend and participate in NAAC meetings, but are not members of NAAC and do not vote.

Additional organizations may participate in NAAC at the invitation of the Participat-ing Organizations.

C. MeetingsNAAC will meet in person up to three

times a year. Arrangements for the in-per-son meetings (including location and chair-ing the meeting) shall be the responsibility of the host country. Each year, one of the Participating Organizations shall be respon-sible for working together with the group designated to prepare the agenda and with the hosting organizations in order to finalize the agenda and prepare meeting materials for each NAAC meeting. The Participating Organizations shall decide how to coordi-nate the agenda and provide meeting mate-

rials for the following year no later than at their fall meeting each year. The Participat-ing Organizations agree to share equally the costs to perform this support function, with the Mexican organizations counting as one organization. When appropriate, the Acad-emy also agrees to make its legal counsel available for consultation to NAAC; and to coordinate, upon request, with counsel for the CIA and the Mexican organizations to develop such legal advice.

III. Communications Among the Participating

OrganizationsA. Each Participating Organization shall

share items of mutual interest, includ-ing items distributed to the Partici-pating Organization’s board members (subject to board approval), with the other members of NAAC as soon as fea-sible after the items are available (elec-tronically through the NAAC list server if appropriate). This sharing includes the Participating Organization’s year-book, newsletters, and board minutes, in addition to other important docu-ments or significant studies that would be of value to the wider audience. This sharing does not apply to any item that a Participating Organization considers to be confidential.

B. Each Participating Organization shall en-deavor to inform each of the other Par-ticipating Organizations on a timely basis of any of its actions that are expected to have a significant effect on one or more of the other Participating Organizations or their members.

C. Each Participating Organization shall in-vite the Members of NAAC to all general membership meetings, with the registra-tion fee waived.

By our signatures below, we represent that our organizations, by resolution of their governing boards, agree to the above


goals and to cooperate consistent with the principles set forth in this Working Agree-ment.

American Academy of Actuaries (Academy)

American Society of Pension Professionals and Actuaries (ASPPA)

Asociacion Mexicana de Actuarios (AMA) Asociacion Mexicana de Actuarios Consultores (AMAC)

Canadian Institute of Actuaries (CIA)

Casualty Actuarial Society (CAS)

Colegio Nacional de Actuarios (CONAC)

Conference of Consulting Actuaries (Conference)

Society of Actuaries (SOA)


Cross-Border Discipline

AgreementThis is an agreement between the Ca-

nadian Institute of Actuaries (CIA) and the American Academy of Actuaries (Academy), the American Society of Pen-sion Professionals and Actuaries, the Ca-sualty Actuarial Society, the Conference of Consulting Actuaries, and the Society of Actuaries (collectively “the U.S.-based organizations”). The CIA and the U.S.-based organizations agree that it is in the best interests of their members to reduce the risk that their members will be sub-jected to multiple disciplinary investiga-tions arising out of a single complaint, inquiry, or incident involving an alleged breach of the professional standards of the CIA and/or the U.S.-based organiza-tions. Consequently, with regard to their members practicing in the United States and Canada, the CIA and the U.S.-based organizations agree as follows:

1. Members of the U.S.-based organiza-tions practicing in Canada are required by the U.S.-based organizations to comply with the Rules of Professional Conduct, Standards of Practice, and eligibility re-quirements of the CIA. Members of the CIA practicing in the United States are required by the CIA to comply with the Codes of Professional Conduct, Qualifica-tion Standards, and Actuarial Standards of Practice of the U.S.-based organizations. The location(s) of the member’s practice in each case is determined by the ultimate purpose(s) of the member’s work, as de-termined by the facts and circumstances of the case. As between the United States and Canada, the ultimate purpose(s) of a member’s work is determined by whether the work is performed pursuant to the

legal or regulatory requirements of the United States or Canada, or whether it is intended for use in the United States or Canada. (Thus, for example, an actuary who performed work to be filed with a United States governmental body would be deemed to have practiced in the Unit-ed States when performing that work; similarly, an actuary who performed work to be filed with a Canadian governmental body would be deemed to have practiced in Canada when performing that work.) The residence or physical location of the actuary is irrelevant to the determination of whether the actuary has practiced in the United States or Canada.

2. Questions concerning members’ prac-tice in Canada are investigated by the CIA in accordance with its rules and bylaws. Questions concerning members’ practice in the United States are investigated by the Actuarial Board for Counseling and Disci-pline and acted upon by the U.S.-based or-ganizations in accordance with their rules and bylaws.

3. If a question arises concerning a CIA

member’s practice in the United States and the CIA member is not also a member of one or more of the U.S.-based organizations, the question will be investigated by the Actu-arial Board for Counseling and Discipline and reviewed by the Academy in accordance with its rules and bylaws as if the CIA mem-ber were a member of the Academy.

4. The parties hereby agree that, in in-stances where it is unclear whether a com-plaint, inquiry, or incident involving a mem-ber should be investigated by the CIA or by the ABCD, the CIA’s executive director and legal counsel to the ABCD will initiate dis-cussions between the CIA and ABCD to de-termine which organization will undertake the investigation.

5. A determination by the CIA that a


member of one or more of the U.S.-based organizations breached the applicable Rules of Professional Conduct, Standards of Prac-tice, or eligibility requirements of the CIA when practicing in Canada will be made solely by the CIA, and will be deemed final by all the parties to this agreement when the appeal process of the CIA has been ex-hausted. A determination by one or more of the U.S.-based organizations that a member of the CIA breached the applicable rules of the U.S.-based organization(s) when prac-ticing in the United States will be made solely by the U.S.-based organizations pur-suant to findings and recommendation of the ABCD, and will be deemed final by all the parties to this agreement as to each U.S.-based organization when the appeal process of that U.S.-based organization has been exhausted.

6. The CIA will retain sole authority to de-

termine the penalty to be imposed by the CIA upon one of its members based upon a finding by one or more of the U.S.-based or-ganizations that a CIA member breached ap-plicable rules when practicing in the United States. Each of the U.S.-based organizations will retain sole authority to determine the penalty to be imposed by that organization upon one of its members based upon a find-ing by the CIA that the member breached applicable rules when practicing in Canada.

7. The CIA agrees to communicate to the

relevant U.S.-based organizations any pub-lic finding that a member of the U.S.-based organizations breached applicable rules when practicing in Canada, regardless of whether the member is also a member of the CIA, and to provide each of the relevant U.S.-based organizations with a copy of the Appeal Tribunal transcript, if any, or the transcript of the Disciplinary Tribunal and the findings of the Appeal Tribunal, if any, or the findings of the Disciplinary Tribunal. The CIA will also provide to the U.S.-based organizations upon request any and all ad-

ditional documents and evidence considered by the tribunal in rendering its decision not subject to the solicitor-client or litigation privileges. Each of the U.S.-based organiza-tions agrees to communicate to the CIA any public finding that a member of that U.S.-based organization who is also a member of the CIA breached applicable rules when practicing in the U.S., and to provide a copy of the ABCD’s findings and conclusions and a summary of the U.S.-based organization’s conclusions, as well as other documents not subject to the attorney-client or attor-ney work product privileges, upon request from the CIA. The Academy agrees to com-municate to the CIA any finding that a CIA member who is not also a member of any U.S.-based organization breached appli-cable rules when practicing in the United States, and to provide a copy of the ABCD’s findings and conclusions and a summary of the Academy’s conclusions, as well as other documents not subject to the attorney-cli-ent or attorney work product privileges upon request from the CIA. The parties will communicate to each other any finding of breach of applicable rules that results in public discipline, but will not communicate or provide copies of documents generated through investigation of a complaint or question concerning an actuary’s conduct that did not result in public discipline.

8. The CIA and each of the U.S.-based

organizations will not recommend to each other that any specific penalty be imposed upon a member based upon a finding that a member breached applicable rules of con-duct, qualification, or practice, but they will recommend that public disciplinary action be considered against a member if that member has been found to have breached applicable rules of conduct, qualification, or practice.

9. Where, in accordance with this agreement, the CIA communicates to the relevant U.S.-based organization(s)


a public finding that a member of one or more of the U.S.-based organizations has breached applicable rules of conduct, qualification, or practice when practicing in Canada, or the U.S.-based organization communicates to the CIA a public finding that a CIA member has breached appli-cable rules of conduct, qualification, or practice when practicing in the United States, the parties hereby agree that each of the recommending organization(s) designates the following representative to assist in answering any questions that the penalizing organization(s) may have with respect to the recommendation(s):

1. Academy: Executive Director 2. ASPPA: Executive Director 3. CAS: Executive Director 4. CCA: Executive Director 5. CIA: Executive Director 6. SOA: Executive Director

Nothing in this agreement prevents a penalizing organization, when it receives a recommendation for discipline pursuant to this agreement, from undertaking whatever action it deems necessary, consistent with its own disciplinary procedures, for the lim-ited purpose of determining whether a ma-terial breach of its own Code of Professional Conduct or Rules of Professional Conduct warranting discipline occurred.

10. The parties will each take any neces-sary steps to amend their rules and bylaws to implement this agreement.

This agreement took effect for all com-

plaints, inquiries or incidents involving members; practice as between the United States and Canada that are under consider-ation by the parties on November 1, 2005.

American Academy of Actuaries (Academy)

American Society of Pension Professionals and Actuaries (ASPPA)

Canadian Institute of Actuaries (CIA)

Casualty Actuarial Society (CAS)

Conference of Consulting Actuaries (CCA)

Society of Actuaries (SOA)


Equal Opportunity PolicyADOPTED BY THE EXECUTIVE COMMITTEE OF THE AMERICAN ACADEMY OF ACTUARIES

AUGUST 18, 1993

The American Academy of Actuaries (“the Academy”) is an equal opportunity employer. It also offers services, membership benefits, and opportunities to its present and prospective members (referred to hereinafter collectively as “members”) on a nondiscriminatory basis. It is the Academy’s policy to refrain from unlawful discrimination against employees and members on the basis of race, color, national origin, ancestry, personal appearance, age, gender, pregnancy, marital status, sexual orientation, family responsibilities, religious affili-ation, matriculation, political affiliation, physical, mental, or emotional disability, source of income, place of residence, or unfavorable discharge from military service, as those terms are defined by applicable state and federal law. These characteristics are referred to herein-after as “protected characteristics.”*

Further, it is the Academy’s policy to provide its employees and members with a working en-vironment that is free from unlawful discrimination based upon any of the protected char-acteristics described above. No Academy employee or member should be subjected to such discrimination while working for, or engaging in activities conducted by, the Academy.

It is also a violation of this policy for an Academy employee or member to seek to retaliate against any individual for complaining of a violation of the Academy’s anti-discrimination policy.**

* The list of protected characteristics is compiled from applicable District of Columbia, Il-linois, and federal laws.** This statement is not intended to preclude the good-faith exercise of an individual’s legal rights.


Conflict of Interest Policy

The Academy has adopted the following mission statement to guide its activities on behalf of the actuarial profession and the public:

As the organization representing the entire United States actuarial profession, the Ameri-can Academy of Actuaries serves the public and the actuarial profession both nationally and internationally through:

a. Establishing, maintaining, and enforcing high professional standards of actuarial qualifi-cation, practice, and conduct;

b. Assisting in the formulation of public policy by providing independent and objective information, analysis and education; and

c. In cooperation with other organizations representing actuaries: •representingandadvancingtheactuarialprofession;and •increasingthepublic’srecognitionoftheactuarialprofession’svalue.

These fundamental purposes of the Academy require it to maintain a high level of profes-sional objectivity and independence from any specific interests of the employers of its members. Therefore, members who work on the Academy’s behalf must carefully consider and address any situation that may arise with respect to the members’ activity, or the ac-tivity of any member working with them, which may call into question their professional objectivity.

Members should comply with the Code of Professional Conduct whenever they provide services to the Academy. Members should familiarize themselves with Precept 7 of the Code, which provides specific guidance on dealing with conflicts of interest. Any actual or potential conflict, real or apparent, with this objective must be dealt with using the guid-ance provided in Precept 7, treating Academy work like “Actuarial Services” as defined in the Code of Professional Conduct. Disclosures required under Precept 7 should be made to the member supervising the activity in question.

Any question or concern about the possibility of a conflict of interest with respect to any work a member may perform on behalf of the Academy should be addressed to the member supervising the activity or to the Academy’s general counsel.


Guidelines for Making Public

Statements(As Adopted by the Board of Directors

January 26, 2006)

I. What Constitutes an Academy Public Statement For purposes of these Guidelines, an Acad-

emy “public statement” is a written or oral statement made on behalf of any Academy entity (i.e., board, committee, task force or work group) to any other entity. Statements of opinion representing the views of an in-dividual member are not Academy public statements under these Guidelines. Exam-ples of Academy public statements include:

A. Statements to governmental entities such as regulatory comment letters, testimony, amicus curiae briefs, or formal comments submitted to legislative, executive, judi-ciary, regulatory, and investigative bodies at the federal, state and local levels;

B. Statements to professional and oth-er interest groups such as letters, oral presentations, or other submissions to non-governmental organizations (e.g., the American Bar Association, Financial Accounting Standards Board, the Gov-ernment Accounting Standards Board, the International Accounting Standards Board, the National Association of Insur-ance Commissioners).

C. Statements to the media such as articles, letters to the editor, press releases, inter-views, and other expository submissions to newspapers, periodicals, television, radio and cable stations and other mass media.

II. The Scope of Academy Public Statements

Academy public statements should be consistent with the mission and purpose of

the Academy and grounded in actuarial sci-ence. However, the actuarial profession’s ex-pertise is broader than what normally would be considered “pure” actuarial science. Con-sequently, it is appropriate for the Academy to issue a public statement that goes be-yond the narrow areas where the actuary’s knowledge is unique if that statement will contribute to discourse on an issue that is of interest to the Academy, its members, and the public.

The scope, tone and nature of an Acad-emy public statement should reflect the dignity and professionalism of the actuar-ial profession. Statements should contain a clear, concise, and balanced presentation of significant facts, including relevant benefits and costs. An Academy public statement need not, however, limit itself solely to statements of fact, but may also draw valid inferences from statements of fact, express opinions, and advocate consistent with the Academy’s mission, vision, and purpose in order to provide the public with the benefit of the full range of the profession’s capa-bilities.

III. Development and Delivery of Public Statements

Academy members and staff should generally follow these Guidelines in the development and delivery of Academy public statements, although these proce-dures may be modified from time to time to ensure the timeliness and effectiveness of certain statements. In particular, me-dia communications are considered to be a special form of public communication because media deadlines frequently pre-vent the utilization of the review process-es described in these Guidelines. When letters to the editor, radio or television interviews, or other media submissions are expected, the member who chairs the Academy entity that prepared the public statement or who is expected to act as the Academy’s spokesperson should con-


tact the Academy’s director of communi-cations for special guidance.

A. Identification of Issues In deciding whether to issue a public

statement and what the content of the statement will be, Academy entities should comply with the Public Policy Decision Model Application Guide published in the Academy’s Yearbook & Leadership Manual.

B. Authority to ProceedAcademy public statements should only

be issued if authorized by one or more Academy officers (i.e., President, Presi-dent-Elect, Vice President, Secretary-Trea-surer, or Past President) with supervisory authority over the public statement. If an Academy committee, task force, or work group identifies a matter that may war-rant a public statement, it may develop the public statement if authorized to do so by the relevant Academy supervisory officer and subject to applicable peer, legal, and policy review and approval procedures. If staff or supervisory officers identify a mat-ter that may warrant an Academy public statement, they will assign it to an appro-priate Academy entity (i.e., committee, task force, or work group) to develop. If a com-mittee, task force, or work group identifies an issue that is significant for more than one practice area, staff and the interested supervisory officers will discuss the matter, consulting other Academy members if de-sired, determine which Academy entity will develop the statement, and then arrange for proper coordination among interested Academy entities through the use of joint task forces, committee liaisons, dual prac-tice council reviews, or other appropriate means. Supervisory officers may, at their discretion, seek advice from their practice councils to resolve “jurisdictional” issues and achieve proper coordination.

C. Notice of Public Statement Preparation

Members will be notified of the prepara-tion of public statements and, more gener-ally, of issues and matters of concern to the Academy, on the Academy’s website and through articles and announcements in The Actuarial Update, Inside the Academy, Me-dia Update, and Contingencies. As appropri-ate, member input will be solicited. Reports summarizing Academy activities during the previous 12 months are published annually in the Academy Record.

D. Development of Public Statements

Academy committees, task forces, and work groups will prepare Academy public statements and supporting materials as follows:

1. An Academy public statement generally reflects the opinions of the Academy en-tity that prepared it, but it is always ap-propriate for the entity to involve other Academy members who are considered by the entity to have pertinent expertise. In some instances, the chairperson of the entity preparing the public statement may decide, with the approval of the supervisory officer, that it would be ben-eficial to involve non-Academy members, including non-actuaries.

2. When addressing issues that are expected to be controversial within the profession, the chairperson and supervisory officer should seek broader input from Academy members and leaders of the profession by, e.g., inviting member comments in Academy publications or on the web-site, discussing the issues with Academy leadership and the leadership of other actuarial organizations, solicitations and special sessions at actuarial meetings, special seminars on the issues, discussions with Academy committees, task forces or


work groups or, if time permits, circula-tion of exposure drafts. The supervisory officer will select the means used to ob-tain member input in appropriate consul-tation with the Academy president, the chairperson of the entity preparing the public statement and staff. Academy staff and the supervisory officer are initially responsible for determining whether an issue is expected to be controversial.

3. Staff is available to facilitate the prepa-ration and distribution of Academy pub-lic statements, and members are strongly encouraged to work collaboratively with staff to produce statements under these guidelines that are consistent with the Academy’s mission, purposes, and previ-ous public statements.

4. Staff may also develop Academy public statements (e.g., amicus curiae briefs) from time to time. Such statements may be developed with the approval of the appropriate chairperson and supervisory officer and should be circulated to the members of an appropriate Academy committee, task force, or work group for comment prior to release, absent extraor-dinary time constraints.

5. The chairperson should seek a consensus of the group that prepares the public statement. If there is a substantial lack of consensus, the chairperson may elect to: incorporate the majority and minor-ity perspectives into the statement; re-fer the issue to the supervisory officer; or not issue the public statement. In some cases, time constraints may pre-vent the entire committee, task force, or work group from participating in the completion of a particular statement, and the task of drafting the statement may be left to the chairperson or the chairperson’s designee(s). In such cases, the drafters should seek maximum input from available committee, task force, or

work group members to the extent it is practical to do so.

6. A supervisory officer and staff may agree to release a statement before completion of peer review only under extraordinary circumstances. Otherwise, no Academy public statement should be released or presented without appropriate peer re-view. The appropriate level of peer review varies, depending upon the level of risk and exposure of the statement. Before release, statements must be approved by the supervisory officer or designee there-of and Academy public policy and legal staff. Peer review usually should include the committee, task force, or work group chair and two senior reviewers in addition to the supervisory officer (or designee) and staff. The senior review persons, to be selected by the chairperson with ap-proval of the supervisory officer, should be knowledgeable and experienced in the subject at hand and should be intended to reflect broadly held views of the pro-fession.

7. The decision to issue a final public state-ment generally rests with the supervisory officer, who may delegate this respon-sibility to the committee, task force, or work group chairperson or other desig-nee. For issues of major importance or those deemed controversial, the execu-tive director and president also should be consulted before the statement is re-leased to its intended audience.

8. When deemed appropriate by the super-visory officer, a recommendation should be made to the president that a proposed statement be submitted to the Board of Directors for review before issuance. The Board may modify or disapprove a public statement if it believes such action is in the best interests of the Academy.


E. Presentation of Public Statements

The committee or group issuing an Acad-emy public statement must be identified as responsible for the statement. The group will ordinarily be a practice council com-mittee, task force, or work group, or the Board of Directors. Except when the forum requires it, for example, in court proceed-ings or international settings (see below), blanket sponsorship by the entire Academy may not be stated or implied. When the audience is familiar with the Academy and its committee structure, a statement such as the following will usually be sufficient: “This statement was prepared by the Ameri-can Academy of Actuaries’ [XYZ Commit-tee].” In instances when further explanation is appropriate, the committee, task force, or work group should consider including ad-ditional language such as the following: “The [committee] is made up of represen-tatives from the entire range of [name of actuarial practice area]. The committee in-cludes actuaries who work as consultants, are employed by insurance companies, are actuaries for government [specify type of government programs, if appropriate] and the National Association of Insurance Com-missioners, and are employed by nonprofit [specify type, if appropriate] organizations. The expertise of other senior [practice area] actuaries knowledgeable on [issue] was drawn upon to prepare this statement.”

As a general rule, Academy public state-ments are not attributed to the individual members of the group that developed them. In some cases, however, identifying members of the group may add to the credibility of the statement or serve some other purpose such as meeting the requirements of the intended audience. The decision to identify individual authors should be made in con-sultation with the supervisory officer and Academy staff. Unless there is good reason not to do so, non-actuaries who participated in the formulation of the statement should be identified and their non-Academy-mem-

ber status and role identified in footnotes or otherwise. Any statement that involves is-sues of significance to multiple practice ar-eas should clearly identify the practice area to which the statement is intended to apply. All public statements should be dated and submitted in written form, with an oral pre-sentation as appropriate. Statements should be submitted on Academy letterhead.

If an oral presentation concerning an Academy public statement is to be made, the chairperson of the group that devel-oped the statement and supervisory officer will select the person or persons to make the presentation. When an individual makes an oral presentation of an Academy public statement, for example, when testifying concerning the content of the statement before Congress, the individual should state that he or she has been designated as the representative of the Academy committee, task force, or work group that prepared the public statement, and that the views expressed by the individual represent the consensus views of the Academy group that prepared the public statement. No individual making an oral presentation of an Academy public statement should express the views of his or her client or employer when mak-ing the presentation. The individual should state that he or she is not speaking on be-half of the individual’s client or employer. If, through questioning or other means, the individual is required to express a personal opinion concerning the subject of the pub-lic statement, the individual should identify the opinion expressed as his or her own and not the opinion of the Academy group that developed the public statement.

Even when statements are responses to technical methodological inquiries, the gen-eral issue being addressed should be clearly specified in an initial sentence or two. Ex-cept when the Academy is well known to the audience, a formal statement about the Academy (sample below) should be included in the public statement.

It is generally appropriate for a member


who participates in a media interview or other media contact to note that the views expressed by that member are not necessar-ily those of the Academy.

F. Distribution of Statements After an Academy public statement has

been completed and, if applicable, formally submitted, the statement will be available for broader distribution. The statement will be posted on the Academy’s website, and members can request a copy of the state-ment by writing or calling the Academy’s Washington office.

IV. Sample Description of the Academy

The American Academy of Actuaries is a national organization formed in 1965 to bring together, in a single entity, actuar-ies of all specializations within the United States. A major purpose of the Academy is to act as a public information organization for the profession. Academy committees, task forces and work groups regularly pre-pare testimony and provide information to Congress and senior federal policy-makers, comment on proposed federal and state regulations, and work closely with the Na-tional Association of Insurance Commis-sioners and state officials on issues related to insurance, pensions, and other forms of risk financing. The Academy establishes qualification standards for the actuarial profession in the United States and sup-ports two independent boards. The Actuar-ial Standards Board promulgates standards of practice for the profession, and the Ac-tuarial Board for Counseling and Discipline helps to ensure high standards of profes-sional conduct are met. The Academy also supports the Joint Committee for the Code of Professional Conduct, which develops standards of conduct for the U.S. actuarial profession.

V. International Public Statements

From time to time, the Academy may wish to make public statements in the in-ternational context, or to join in public statements made by the International Ac-tuarial Association (IAA) or other interna-tional actuarial organization. Statements by the Academy may be developed by the appropriate Academy committee, task force, or work group in accordance with the preceding sections of these guidelines, except that such statements will gener-ally be issued on behalf of the Academy as a whole, and should be reviewed by the president or the president’s designee be-fore their release. Final approval to issue or join in an international public state-ment is generally granted by the presi-dent with advice of the vice president(s) for the relevant practice area(s). When deemed appropriate by the president, the proposed statement will be submit-ted to the Board of Directors, which may modify or disapprove the statement or, in the case of IAA public statements, recom-mend modifications as appropriate.

The Task Force on IAA Oversight should be notified and included in the review of a proposed IAA public statement before the Academy decides to join in or object to the public statement. The Task Force on IAA Co-ordination should be notified whenever the Academy decides to join in or object to a public statement issued by the IAA.


Guidelines for the Development of Practice Notes

The purpose of practice notes is to provide information to actuaries on current actu-arial practices in areas that are intended to supplement the available actuarial litera-ture, especially where the areas of practice addressed are subject to emerging technol-ogy or recently adopted external require-ments. Practice notes are not interpreta-tions of standards, nor do they convey generally accepted actuarial practices in the same sense that standards of practice do. Actuaries are not in any way bound to follow practice notes. Notes concerning general questions relating to professional-ism may also be issued.

Practice Notes are written by groups of actuaries having practical experience and expertise in a particular area of practice. There may be informal exposure of draft practice notes by the originating group to meetings of other interested actuaries, but there is no formal process for recording or responding to any comments that might be generated. The practice notes developed are reviewed and edited by Academy staff and, if approved by the appropriate prac-tice council chairperson, are published and distributed by the Academy. In contrast, actuarial standards of practice and com-pliance guidelines are promulgated by the Actuarial Standards Board, which adheres to procedures that are intended to provide due process and exposure to professional review.

The following guidelines are intended to assist Academy officers, committees, and staff in developing and maintaining the timeliness and effectiveness of practice notes. These guidelines are designed to pro-

mote consistency of quality and style and to ensure that the practices identified are in conformity with the standards of prac-tice and existing regulatory requirements. Nothing in these guidelines is intended to inhibit other actuarial organizations from publishing materials that provide informa-tion on current actuarial practices to assist practicing actuaries.

1. Practice Council Oversight. Practice notes are primarily the responsibility of the practice councils of the Academy, with support from Academy staff, of-ficers, and committees; committees or task forces of other actuarial organiza-tions; and individual actuaries.

2. Initiation of Request. While the prac-tice councils are charged with monitor-ing the need for new Practice notes and the revision of existing practice notes, any actuary or entity may request that the development or revision of practice notes be considered for a specific area of practice. Such requests may be directed to the appropriate practice council for evaluation of need, approval, and imple-mentation.

3. Authority to Proceed. If a practice coun-cil determines that a new or revised practice note is needed in a particular area of practice, the practice council chairperson (“PC chair”) will request that an appropriate committee or task force within the profession develop the prac-tice note.

4. Development Procedures. Practice notes will generally be developed by a com-mittee or task force and will be identi-fied as a product of that group. It may be appropriate, however, to involve oth-er actuaries believed by the committee or task force to have pertinent expertise or experience. From time to time it may also be appropriate to solicit the input of non-actuaries. When and how such ad-ditional input is solicited is at the discre-tion of the committee Chairpersonwith


concurrence of the PC chair. Practice notes should describe the known range of practices in use to the fullest extent possible.

5. Required Disclosures. Each Practice note should begin with a paragraph stating that the practice note is not a promul-gation of the Actuarial Standards Board or of any other authoritative body of the American Academy of Actuaries, identifying the group that developed the practice note, and explaining that information contained in the practice note is not binding on any actuary and is not a definitive statement as to what constitutes generally accepted practice in the area under discussion. Blanket sponsorship by the Academy should not be stated or implied.

6. Consensus. The chairperson should seek a general consensus of the committee members. If there is substantial lack of consensus, the chairperson may elect not to issue a practice note, to refer the issue to the PC chair, or to incorporate the alternate perspectives into the prac-tice note.

7. Review Procedures. No practice note should be released without appropri-ate peer review. At a minimum, practice notes should be reviewed by the com-mittee or task force chairperson, the PC Chairpersonand/or his or her designee(s), and Academy staff. All practice notes must receive legal and editorial review by the Academy staff to assure legality and consistency with previous notes and standards of practice.

8. Final Approval. The ultimate decision to issue a practice note rests with the PC chair. For issues of major significance, the PC Chairpersonmay consult with the Academy executive director, as well as the president, prior to the release of the note.

9. Production and Distribution. Production and distribution of final practice notes will be handled by the Academy staff.

Distribution may vary depending on the audience for the notes.

10. Annual Review. The PC Chairpersonwill initiate a review of the current practice notes annually for relevance, purpose, and completeness.


Academy History “From the halls of Congress and state capi-tols to regulatory and professional bodies such as the NAIC, FASB, and the IAA, the Academy represents the interests of all U.S. actuaries. As a member of the Academy, you are demonstrating a personal commit-ment to responsible actuarial practice, pro-fessionalism, and sound public policy.”— Dan McCarthy, Academy past president

For many years, the actuarial profession in North America consisted of four organizations: the Casualty Actuarial Society (CAS), the Con-ference of Actuaries in Public Practice, the Fra-ternal Actuarial Association, and the Society of Actuaries (SOA). In 1964, these organizations recognized the need for a single inclusive body that would represent qualified American actu-aries of all specialties. They approved the cre-ation of a new organization.

The American Academy of Actuaries was born Oct. 25, 1965, as an unincorporated as-sociation serving the actuarial profession in the United States. In 1966, it became a cor-poration under the Illinois General Not For Profit Corporation Act. The Academy’s first president was Henry F. Rood — the actuary who had first formally proposed the creation of such an organization in 1958, when he was SOA president. Initially, the Academy shared administrative facilities with the SOA in Chicago; then, in January 1976, the Academy moved to its headquarters to the nation’s capital, where it remains today.

The mission statement, updated in 1998, articulates the main purposes of the Acad-emy’s work:

As the organization representing the en-tire United States actuarial profession, the American Academy of Actuaries serves the public and the actuarial profession both na-tionally and internationally through: a. Establishing, maintaining, and enforcing

high professional standards of actuarial qualification, practice, and conduct,

b. Assisting in the formulation of public policy by providing independent and ob-jective information, analysis, and educa-tion, and

c. Cooperating with other organizations representing actuaries, representing and advancing the actuarial profession, and increasing the public’s recognition of the actuarial profession’s value.

The Academy serves as the voice of American actuaries on public policy and professionalism issues, representing the U.S. actuarial profession at the state, federal, and international levels. It provides inde-pendent, objective actuarial expertise on public policy issues to legislators, regulators, policy-makers, and others, and it develops and maintains professional standards.

The Academy started out with 1,427 char-ter members, automatically offering mem-bership to all U.S. residents who were fel-lows (or the equivalent) of the four existing American actuarial organizations. Today, the Academy has about 15,000 members — most of the actuaries in North America. They in-clude consultants, corporate executives, reg-ulators, university professors, government officials, and retirees. Their areas of practice range from pensions and financial reporting to casualty, life, and health insurance.

LeadershipThe Academy’s work is governed by three

primary groups: the Board of Directors, the Executive Committee (the president, presi-dent-elect, immediate past president, secre-tary-treasurer, and the six vice presidents), and the President’s Advisory Committee (the current president, immediate past president, and president-elect).

The vice presidents head the Academy’s six councils for public policy and profes-sionalism issues. Each council has broad au-thority to set its own agenda, and specific initiatives are carried out by Academy com-mittees that report to it.


One multidisciplinary council and four practice councils focus on public policy. In 1990, the Board of Directors established four councils to represent the major areas of actuarial practice—casualty, health, life, and pensions—in public policy activities. The Risk Management and Financial Reporting Council (originally the Financial Reporting Council) was added in 1996. On the profes-sionalism side, the Council on Profession-alism was created in 1992; it oversees the Academy’s efforts in setting and maintain-ing professional standards and in advancing professionalism through educational offer-ings, publications, and other activities.

Legal RecognitionAcademy membership is the hallmark of a

qualified actuary in the United States. In December 1966, the National Asso-

ciation of Insurance Commissioners (NAIC) adopted a resolution supporting recognized standards of actuarial competence and con-duct and urging commissioners to support the Academy’s efforts to gain official rec-ognition. Today, every state has regulations that recognize Academy membership as a qualification for signing insurance company annual statements. Some states also have corresponding recognition for public em-ployee retirement systems.

Indiana was the first state to act; in a 1968 law, it provided for actuarial certi-fication by a state board. In other states, the general pattern has been to issue ad-ministrative orders or regulations. In 1975, the responsibility expected of actuaries was spelled out by a new requirement that an actuary who signed a life insurance com-pany annual statement must express an opinion on the actuarial elements, including an opinion on the adequacy of reserves. The Academy responded with recommendations to the profession on how that responsibility should be met (as it did again in 1983 when a comparable actuarial opinion began to be required for health service corporation and

HMO annual statements). In 1980, a similar requirement was added to the property and liability insurance company annual state-ment; this requirement, however, was at the discretion of the domiciliary insurance com-missioner. Again, the Academy responded with appropriate recommendations to the profession.

In 1990, at the Academy’s urging, the NAIC eliminated the discretion of individual states. As a result, virtually all annual state-ments from property/casualty companies in the United States must be accompanied by a loss reserve opinion from a “qualified actu-ary,” which is defined as either an Academy member approved by the Casualty Practice Council, a member of the Casualty Actuarial Society, or an individual approved by the domiciliary commissioner. (In the pension field, the 1974 ERISA legislation established extensive and specific standards for actu-arial reports, for disclosure and fiduciary relationships, and for the qualifications of actuaries in pension work.) In 2005, Academy membership also became a legal requirement for actuaries who file actuarial equivalence attestations on behalf of retiree health plans plans seeking a Medi-care Part D subsidy.

Membership Requirements Initially, the Academy required applicants

who were ineligible for charter membership to demonstrate appropriate knowledge and skills before they were admitted as mem-bers. Many were admitted by this route, some after passing special proctored exams. A requirement was imposed of seven years of responsible actuarial experience (five years for fellows by examination of the ex-isting bodies).

From 1970 until 1976, the educational requirements gradually increased. In Janu-ary 1976, a bylaw amendment created a new nonvoting class of membership, the designated affiliate, for enrolled actuaries. In 1979, the bylaws were changed to elimi-


nate the distinction between affiliates and members and to set the experience require-ment at three years of responsible work.

Subsequently, the Academy board set the basic educational requirement as follows: associate level in the Casualty Actuarial So-ciety or Society of Actuaries; or qualified member or fellow level in the American So-ciety of Pension Professionals and Actuar-ies; or member level in the Conference of Consulting Actuaries; or status as an en-rolled actuary under ERISA; or fellow level in the Institute of Actuaries, the Faculty of Actuaries, or the Institute of Actuaries of Australia; or member level in the Colegio Nacional de Actuarios.

U.S. residents and nonresidents alike can be admitted if they meet the Academy’s educational and experience standards, can demonstrate familiarity with U.S. actuarial practices and, in the case of nonresidents, have a need to perform actuarial duties in the United States.

Code of ConductThe Code of Professional Conduct in-

cludes precepts and annotations that re-quire a high standard of ethics and respon-sible performance expected of professionals. The precepts require actuaries to abide by standards of practice, as promulgated by the Actuarial Standards Board, and to abide by qualification standards adopted by the Academy.

As a predecessor of the code, the Guides to Professional Conduct were first issued in 1965, and they were revised over time. Together, the guides and the interpretative opinions that supplemented them formed a core of ethical guidance for members in all phases of their professional lives. In September 1991, the Board of Directors ap-proved a new set of ethical precepts, one recommended by the Council of Presidents Task Force on the Code of Professional Con-duct. These precepts were intended to be a common code of ethical tenets for all or-

ganizations representing actuaries in North America.

The Academy was the first to adopt the Code of Professional Conduct, which took effect Jan. 1, 1992; its most recent amended version took effect Jan. 1, 2001. The code has been adopted in substantially similar form by every professional society representing actu-aries in the United States and Canada.

Standards of PracticeThe Academy began issuing standards of

practice — initially called recommendations — in 1973. They were supplemented by inter-pretations. A major advance in the develop-ment and management of standards of prac-tice came in 1985 with the creation of the Interim Actuarial Standards Board. It was the prototype for the permanent Actuarial Stan-dards Board (ASB), which was created in July 1988 after a bylaw amendment vote.

Like the Actuarial Board for Counseling and Discipline, the ASB is a separate entity supported by Academy staff. It has sole re-sponsibility to initiate, develop, and adopt new actuarial standards of practice (ASOPs). ASOPs include statements on the techniques, applications, procedures, and methods that have been generally accepted by the profes-sion. The Code of Professional Conduct re-quires actuaries to be knowledgeable about and to abide by these standards.

Counseling and Discipline From the start, the Academy recognized

the need for a disciplinary procedure to en-force standards of conduct and provide an avenue to express grievances regarding the professional activities of Academy members. For many years, the Committee on Discipline was responsible for handling complaints, investigating charges, and proposing dis-ciplinary measures. Because duplications of effort by disciplinary committees of the various actuarial organizations frustrated effective discipline, and because a common Code of Professional Conduct was being ad-


opted, Academy members voted in 1991 to create the Actuarial Board for Counseling and Discipline (ABCD).

The ABCD serves the profession and the public by investigating complaints against individual actuaries, by providing confiden-tial guidance to actuaries requesting it, and, to a limited extent, by mediating profes-sional disputes.

As a separate entity supported by the Acad-emy staff, the ABCD investigates apparent vio-lations of the Code of Conduct by members of any organization that represents actuaries and that has delegated investigative authority to the ABCD. (The Academy and other organiza-tions have delegated such authority.) For ac-tivities that in the ABCD’s opinion do not merit public discipline, or in response to actuaries’ requests for guidance, actuaries are counseled privately and are provided guidance in comply-ing with the requirements of the code, qualifi-cation standards, and standards of practice.

Public Policy As the public policy arm of the American

actuarial profession, the Academy provides independent, objective analysis to policy-makers and regulators. Academy members use their actuarial expertise to contribute to the public debate on major issues, ranging from Social Security solvency to terrorism insurance, and important regulatory efforts, such as principle-based reserving require-ments.

For many years, Academy groups have worked extensively with the National As-sociation of Insurance Commissioners on state insurance issues; a recent milestone was the NAIC’s adoption in 2005 of Acad-emy recommendations on risk-based capital for variable annuities (the C3 Phase II proj-ect). Even as close work with the NAIC con-tinued, the Academy broadened its efforts in recent years, working on state insurance issues with, for example, the National Con-ference of Insurance Legislators, the Federal Accounting Standards Board, the Govern-

mental Accounting Standards Board, the American Institute of Certified Public Ac-countants, and AARP.

To provide an actuarial perspective on key federal issues, the Academy sponsors Capitol Hill briefings, testifies at congressional and executive branch hearings, publishes com-ments and analysis, makes annual Capitol Hill visits, and provides informal assistance to policy-makers, regulators, and others. These efforts reflect a heightened emphasis on the public policy debate at the national level. At the same time, global issues have also moved to the foreground in recent years, and international Academy activities have significantly expanded as a result.The Academy’s public policy efforts are supported by the Casualty Practice Coun-cil, Health Practice Council, Life Practice Council, Pension Practice Council, and the Risk Management and Financial Reporting Council. The Academy’s senior health fellow and senior pension fellow play a major role in representing the Academy on public poli-cy issues, as do other Academy members.

Joint Activities The North American actuarial organi-

zations cooperate in many ways, largely through joint sponsorship of actuarial ex-aminations and the work of joint commit-tees. Also, the Academy’s Board of Directors includes the presidents and presidents-elect of all national U.S. actuarial organizations, ensuring that the board represents actuaries in all types of practice.

In 1972, the Academy was instrumental in creating an informal body, the Council of Presidents, to foster even greater under-standing and common purpose. The council was renamed in 2004 and is now the North American Actuarial Council.


Past Officers1965–66 President Henry RoodPresident-Elect Thomas Murrin Secretary George Bryce Treasurer Robert Bruce Vice Presidents Frank Gadient, Laurence Longley-Cook John Miller H. Raymond Strong 1966–67President Thomas MurrinPresident-Elect John MillerSecretary Norton MastersonTreasurer Robert BruceVice Presidents Frank Gadient Laurence Longley-Cook H. Raymond Strong Andrew Webster

1967–68President John MillerPresident-Elect Wendell MillimanSecretary Norton MastersonTreasurer Robert BruceVice Presidents Edward Brown Jr. Frank Gadient William Leslie Jr. Allen Mayerson

1968–69President Wendell MillimanPresident-Elect Walter RuglandSecretary Norton MastersonTreasurer Robert BruceVice Presidents Edward Brown Jr. William Leslie Jr. Paul Rotter Harold Schloss

1969–70President Walter RuglandPresident-Elect H. Raymond StrongSecretary Norton MastersonTreasurer Robert BruceVice Presidents Donald Campbell Robert Myers Paul Rotter Harold Schloss 1970–71President H. Raymond StrongPresident-Elect Robert MyersSecretary William HalvorsonTreasurer Robert BruceVice Presidents Donald Campbell Harold Curry John Dyer Morton Miller

1971–72President Robert MyersPresident-Elect Morton Miller Secretary William Halvorson

Treasurer Dale Gustafson Vice Presidents Robert Bruce Harold Curry Ernest Moorhead Julius Vogel 1972–73President Morton MillerPresident-Elect Ernest MoorheadSecretary William HalvorsonTreasurer Dale GustafsonVice Presidents Robert Bruce Reuben Jacobson Daniel McNamara Julius Vogel


1973–74President Ernest MoorheadPresident-Elect Daniel McNamaraSecretary Walter Rugland Treasurer Dale GustafsonVice Presidents Thomas Bowles Jr. Reuben Jacobson Richard Johe William Halvorson

1974–75President Daniel McNamaraPresident-Elect Thomas Bowles Jr.Secretary Walter RuglandTreasurer Dale GustafsonVice Presidents Edwin Boynton Richard Johe Kenneth Ross Robert Winters

1975–76 President Thomas Bowles Jr.President-Elect Robert Winters Secretary Walter RuglandTreasurer James WebbVice Presidents Edwin Boynton Dale Gustafson M. Stanley Hughey Kenneth Ross

1976–77President Robert WintersPresident-Elect Edwin BoyntonSecretary Ralph EdwardsTreasurer James WebbVice Presidents Ronald Bornhuetter Louis Garfin Dale Gustafson M. Stanley Hughey

1977–78President Edwin BoyntonPresident-Elect Dale Gustafson Secretary Dwight Bartlett III Treasurer James Webb Vice Presidents Preston Bassett Ronald Bornhuetter Louis Garfin Charles Hewitt Jr.

1978–79President Dale GustafsonPresident-Elect Ronald BornhuetterSecretary Dwight Bartlett IIITreasurer Kevin RyanVice Presidents Preston Bassett Herbert DePrenger Walter Grace Charles Hewitt Jr.

1979–80President Ronald Bornhuetter President-Elect Walter Grace Secretary Charles Barry WatsonTreasurer Kevin Ryan Vice Presidents Mary Adams Herbert DePrenger Richard Robertson P. Adger Williams

1980–81President Walter GracePresident-Elect William HalvorsonSecretary Charles Barry WatsonTreasurer Kevin RyanVice Presidents A. Norman Crowder III Bartley Munson Richard Robertson P. Adger Williams


1981–82President William HalvorsonPresident-Elect P. Adger WilliamsSecretary Carl Ohman Treasurer W. James MacGinnitieVice Presidents David Carpenter A. Norman Crowder III William Ferguson Bartley Munson1982–83President P. Adger WilliamsPresident-Elect A. Norman Crowder IIISecretary Carl OhmanTreasurer W. James MacGinnitieVice Presidents David Carpenter William Ferguson John Fibiger Walter Rugland

1983–84President A. Norman Crowder III President-Elect M. Stanley Hughey Secretary Carl Ohman Treasurer Burton Jay Vice Presidents John Fibiger David Hartman David Reade Walter Rugland

1984–85President M. Stanley HugheyPresident-Elect Bartley MunsonSecretary Robert DobsonTreasurer Burton JayVice Presidents Harold Brownlee David Hartman Carl Ohman David Reade

1985–86President Bartley Munson President-Elect Preston Bassett Secretary Robert Dobson Treasurer Burton Jay Vice Presidents Harold Brownlee Edward Friend W. James MacGinnitie Carl Ohman

1986–87President Preston BassettPresident-Elect John FibigerSecretary Robert DobsonTreasurer Daniel McCarthyVice Presidents Edward Friend Burton Jay W. James MacGinnitie Mavis Walters

1987–88President John Fibiger President-Elect W. James MacGinnitieSecretary Virgil Wagner Treasurer Daniel McCarthy Vice Presidents Phillip Ben-Zvi Burton Jay Joseph Stahl II Mavis Walters

1988–89President W. James MacGinnitiePresident-Elect Harold BrownleeSecretary Virgil WagnerTreasurer Daniel McCarthyVice Presidents Phillip Ben-Zvi Harper Garrett Jr. John Harding Joseph Stahl II


1989–90President Harold Brownlee President-Elect Mavis Walters Secretary Virgil Wagner Treasurer Thomas Levy Vice Presidents Harry Garber Harper Garrett Jr. John Harding Daniel McCarthy

1990–91President Mavis WaltersPresident-Elect Harry GarberSecretary Richard SnaderTreasurer Thomas LevyVice Presidents Robert Dobson Charles Farr Daniel McCarthy Michael Walters

1991–92President Harry Garber President-Elect John Harding Secretary-Treasurer Thomas Levy Vice Presidents Robert Dobson R. Stephen Radcliffe Richard Snader Michael Walters Larry Zimpleman

1992–93President John HardingPresident-Elect David HartmanSecretary-Treasurer James SwensonVice Presidents Howard Bolnick Stephen Lowe Walter Miller Richard Snader Larry Zimpleman

1993–94President David Hartman President-Elect Charles Bryan Secretary-Treasurer James Swenson Vice Presidents Howard Bolnick Howard Fluhr Paul Kolkman Stephen Lowe Jack Turnquist

1994–95President Charles BryanPresident-Elect Jack TurnquistSecretary-Treasurer James SwensonVice Presidents John Bertko Howard Fluhr David Flynn Paul Kolkman Charles Barry Watson

1995–96President Jack Turnquist President-Elect Larry Zimpleman Secretary-Treasurer Stephen KernVice Presidents Vince Amoroso John Bertko Arnold Dicke David Flynn Charles Barry Watson

1996–97President Larry ZimplemanPresident-Elect Allan KaufmanSecretary-Treasurer Stephen KernVice Presidents Vince Amoroso William Bluhm Arnold Dicke Ken Hartwell Barbara Snyder Michael Toothman


1997–98President Allan KaufmanPresident-Elect Richard RobertsonSecretary-Treasurer Stephen KernVice Presidents William Bluhm Ken Hartwell Lawrence Johansen Kenneth Steiner Michael Toothman Robert Wilcox

1998-99President Richard RobertsonPresident-Elect Stephen KernSecretary-Treasurer James ReiskytlVice Presidents Robert Anker Lawrence Johansen Daniel McCarthy James Murphy Kenneth A. Steiner Robert E. Wilcox

1999–2000President Stephen Kern President-Elect Lawrence JohansenSecretary-Treasurer James ReiskytlVice Presidents Robert Anker Barbara Lautzenheiser Daniel McCarthy James Murphy Donna Novak James Turpin

2000-2001President Lawrence JohansenPresident-Elect Daniel McCarthySecretary-Treasurer James ReiskytlVice Presidents Henry Knowlton Barbara Lautzenheiser Steven Lehmann Donna Novak Geoffrey Sandler James Turpin

2001-2002President Daniel McCarthy President-Elect Robert Anker Secretary-Treasurer Peter PerkinsVice Presidents Steven Lehmann John Parks Stephen Preston Robert Rietz Geoffrey Sandler Patricia Teufel

2002-2003President Robert AnkerPresident-Elect Barbara LautzenheiserSecretary-Treasurer Peter PerkinsVice Presidents Janet Carstens Jan Lommele John Parks Stephen Preston Robert Rietz Patricia Teufel

2003-2004President Barbara LautzenheiserPresident-Elect Robert WilcoxSecretary-Treasurer Peter PerkinsVice Presidents Janet Carstens Donna Claire Burton Jay Kenneth Kent Jan Lommele Robert Rietz

2004-2005President Robert WilcoxPresident-Elect Peter PerkinsSecretary-Treasurer John ParksVice Presidents Michael Abroe Donna Claire Burton Jay Kenneth Kent Mary D. Miller Geoffrey Sandler


Jarvis Farley Service Award

In 1991, the Acad-emy established a per-petual award to honor the memory of one of its long-time, indefati-gable volunteers. Jarvis Farley was a charter member of the Acad-emy and an invaluable resource for the Acade-my staff and the entire actuarial profession. His untiring volunteer work for the Academy epitomized the caliber of ser-vice to be honored by this award. He began serving on Academy committees in 1972 and continued until his death in 1991.

Each honoree receives an engraved pew-ter Paul Revere bowl. A larger, permanent bowl, engraved with the name of each re-cipient, is displayed at the Academy office in Washington. While honoring individual recipients, the award also calls attention to the significant benefits the actuarial profes-sion receives from members’ service in the Academy.

Recipients of the Jarvis Farley Service Award are selected by the Academy’s Ex-ecutive Committee based on nominations from the Academy’s membership and com-mittees. Eligible candidates are members of the Academy who have:•demonstratedtheircommitmenttopro-

fessionalism,•madeanextraordinarycontributionto

the actuarial profes-sion through long-time service as Academy volunteers,•beenaninspirationto practicing actuaries, and•commandedrespectwithin and without the profession.

All members of the Academy are eligible to receive the award,

except former presidents’ past service to the profession is the only service to be considered during the selection process.

Jarvis Farley Service Award Recipients

1992 Mary Hardiman Adams1993 Jerome A. Scheibl1994 Douglas C. Borton1995 Harry L. Sutton Jr.1996 Charles Barry H. Watson1997 James C. Hickman1998 Edward E. Burrows1999 Henry K. Knowlton2000 Daphne D. Bartlett2001 Jack M. Turnquist2002 Burton D. Jay2003 Walter S. Rugland2004 W. H. Odell2005 Donna Claire

2005 Jarvis Farly Award winner Donna Claire ac-cepts her award from 2004–2005 Academy Presi-dent Robert Wilcox.


Robert J. Myers Public Service AwardIn 1994, the Acad-

emy, through its Com-mittee on Actuarial Public Service, estab-lished the Robert J. Myers Public Service Award to recognize the extraordinary pub-lic service of Robert J. Myers, who was chief actuary for the Social Security Administration from 1947 to 1970. The exceptional career of Myers was recognized with the public announcement of the award at the Academy’s annual meeting in Washing-ton, D.C. on September 28, 1994. Myers was instrumental in the design and funding of the Social Security system and worked for the So-cial Security Administration for some thirty-five years. Although political pressure often conflicted with his professional responsibilities, Myers never veered from a path of professional integrity. He continues to command respect within and outside the profession, and he re-mains an inspiration to all practicing actuar-ies.

A specially designed medal was presented to Myers at the award’s inauguration. The perma-nent medal is mounted on a custom-designed pedestal and displayed at the Academy office in Washington. Recipients receive engraved medals, and their names are engraved on the base of the permanent display at the Acad-emy. While honoring individual recipients, the award also calls attention to the significant benefits the general public receives from the actuarial profession.

Recipients of the Robert J. Myers Public Service Award are selected by the Academy’s Executive Committee based on nominations from the Academy’s membership and com-

mittees, in particular the Committee on Ac-tuarial Public Service. Eligible candidates are members of the Acad-emy who have:

•demonstratedtheircommitment to pro-fessionalism,•madeanextraor-dinary contribution to the public good

through service to the government or other organizations in the public sphere, even when conflicted by political pressure,

•beenaninspirationtopracticingactuar-ies, and

•commandedrespectwithinandwithoutthe profession.

All members of the Academy are eligible to receive the award, except former presi-dents’ past service to the public is the only service to be considered during the selec-tion process.

Robert J. Myers Public Service Award Recipients

1995 John O. Montgomery1996 Roland E. (Guy) King1997 James B. Gardiner1998 Dwight K. Bartlett III1999 Robert A. Bailey2000 Harry C. Ballantyne2001 Robert J. Callahan2002 Ted Becker2003 Larry M. Gorski2004 A. Haeworth Robertson2005 Paulette Tino

Treasury Secretary John Snow congratulates 2005 Robert J. Myers Award winner Paulette Tino as Academy Executive Director Kevin Cronin looks on.


Resources, Services, and Benefits

The Academy provides an array of infor-mation resources, services, and educational opportunities as a service to its members, the actuarial profession, and, in some cas-es, the public. The Academy’s communica-tions program provides access to virtually all of its materials in an electronic format through the Academy’s website (www.actu-ary.org). Most of the benefits are included as part of a member’s dues, although a few require that additional fees be paid.

Member Publications and Electronic Media

PeriodicalsActuarial Update is the Academy’s

monthly membership newsletter. It focuses on the Academy’s activities in public policy and professionalism. Members are encour-aged to submit articles on committee activ-ities, emerging public policy or profession-alism issues, or general topics of particular interest to actuaries.

Enrolled Actuaries Report (EAR) is the Academy’s quarterly newsletter that covers issues that are important to enrolled actu-aries. It is published in March, June, Sep-tember, and December and is mailed only to enrolled actuaries.

Contact: Linda Mallon, managing editor of member publications, (202) 785-7876, [email protected].

Inside the Academy is a monthly elec-tronic newsletter for Academy members. It helps keep members informed of current Academy activities and online resources and it includes hyperlinks to such publications

as the Actuarial Update, Contingencies, EAR, issue briefs, and monographs.

Contact: Anne Asplen, managing editor of Internet and new media, (202) 785-7864, [email protected].

Contingencies MagazineContingencies magazine is the flagship

publication of the actuarial profession, pro-viding a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. Published bi-monthly, Contin-gencies is mailed to members of the Acade-my, the Canadian Institute of Actuaries, and select individuals (such as legislators and their staffs, regulators, business executives, and related organizations), for a total cir-culation of 27,000. The magazine contains regularly scheduled special sections and in-serts on actuarial careers, software, consult-ing, and reinsurance.

It is the only Academy publication that accepts advertising, generating more than $500,000 in non-dues revenues annually. Contact: Steve Sullivan, senior editor, (202) 223-8196, [email protected].

Academy WebsitesThe Academy manages a number of web-

sites that serve as primary sources of in-formation for members and the public. All material that is published by the Academy is always available on the Academy’s websites.

Academy website: www.actuary.org The

Academy website is the primary electronic repository of all of the Academy’s public policy and professionalism information. In addition, there are complete listings of vol-unteers serving on the board of directors, councils, committees, task forces, and work groups.

Each Academy member has a personal se-cure web page on the website, providing a portal to a range of services, including dues payment, meeting registrations, and sub-


scription purchases. In 2006 the Academy will be expanding the members only con-tent on the website, offering new informa-tion resources and services.

Contingencies website: www.contingencies.org. The website for Contingencies maga-zine includes an archive of previous issues, extra material, and the Academy’s free ac-tuarial job bank.

CRUSAP website: www.crusap.net. The Critical Review of the U.S. Actuarial Pro-fession Task Force is conducting a critical analysis of the challenges and opportunities facing the U.S. actuarial profession, using enterprise risk management and manage-ment consulting techniques. The CRUSAP website contains regular updates on this profession-wide effort.

Contact: Anne Asplen, managing editor of Internet and new media, (202) 785-7864, [email protected].

Annual PublicationsThe Yearbook is the Academy’s annual

handbook for members. It provides infor-mation on the Academy’s purpose, orga-nization, governance, and policies, among other topics.

The Yearbook and Leadership Manual is the Academy’s annual handbook for vol-unteers. It augments Yearbook material with information on such topics as Acad-emy management, legal considerations, and communications procedures.

The Record is an annual report to Acad-emy members that provides an overview of Academy accomplishments and activities.

Public Policy PublicationsProviding legislative and regulatory bod-

ies with independent, non-partisan, public policy analysis and advice from an actuarial perspective is a core mission for the Acad-emy. Public policy documents raise impor-tant actuarial issues and are written to be understood by legislators, policy-makers, regulators, the news media, and the public.

Distribution of the print editions of these documents is generally confined to spe-cific target audiences related to the topic. Members can request printed copies of these documents, and all are available in an electronic format on the Academy’s website (www.actuary.org).

Monograph — Reserved for a major anal-ysis of key public policy issues, a monograph is written under the auspices of an Academy council and receives extensive peer, policy, legal, and communications review under the guidelines for public statements.

Issue Briefs — Short discussion papers, an issue brief generally provides either an overview of an issue or focuses on a single aspect of a larger issue. It also conforms to the guidelines for public statements.

Fact Sheets — One- or two-page analy-ses that provide summary background and actuarial insights on an issue, released as a rapid response to breaking news.

Comment Letters — Sent to legislative and regulatory bodies, comment letters are official statements that provide specific in-put from an actuarial perspective on an is-sue.

Public Policy SubscriptionsAcademy Alerts — Available only to

members, Academy Alerts are timely sum-maries of major legislative, regulatory, and judicial developments affecting actuaries that are delivered electronically to subscrib-ers. Alert subscriptions are available in the life, health, or property/casualty areas for $30 per year; pension/employee benefits alerts cost $50 per year. Every subscriber receives a free subscription to the general insurance alert.

Manuals — The Academy publishes two manuals that are available in a variety of media so that subscribers can choose the one that best meets their needs. Options in-clude individual and group subscriptions for


the manual on CD, on the web, or in a soft-cover book. The Life and Health Valuation Law Manual is designed to help appointed actuaries comply with the requirements of the NAIC model Standard Valuation Law and the Model Actuarial Opinion and Mem-orandum Regulation. The Property/Casualty Loss Reserve Manual is designed to help ap-pointed actuaries comply with NAIC annual statement requirements for statements of actuarial opinion.

For more information on the manu-als’ content and to order, go to the Acad-emy’s website at www.actuary.org, or contact Kasha Shelton, (202-223-8196, [email protected]).

Professionalism PublicationsProfessionalism guidance is provided to

members through the distribution of Ac-tuarial Standards of Practice (ASOPs) and the ASB Boxscore. ASOPs serve to assure the public that actuaries are professionally accountable. At the same time, standards provide practicing actuaries with a basis for assuring that their work will conform to generally accepted practices. The ASB Boxscore is the ASB’s quarterly newsletter, which updates the progress of individual standards through the exposure and ap-proval process.


Academy Meetings

Treasury Secretary John W. Snow made a pitch for the Bush Administration’s Social Security reform proposal when he headlined the Academy’s Spring Meeting in May in Washington, D.C. Snow also recognized the role of the actuarial profession in public policy when he said, “Your profession provides the analytical foundation for government policy, and we are indebted to you.”

In response to members’ needs for na-tion-specific educational opportunities, the Academy has expanded its meeting and seminar program during the past few years. The content at Academy meetings and seminars is based on Academy work product and covers regulatory issues and innovations in actuarial practice. Academy members receive significant discounts on the registration fees for these meetings. In addition to its two regularly scheduled meetings, the Acad-emy holds specialty seminars on topics of importance to practicing actuaries.

The Academy’s two-day Spring Meeting is its premier an-nual conference, providing content for practitioners in all areas of practice. The meeting also features major speakers from government and the public policy arena who offer their insights and knowledge on current and emerging issues. One actuary is also recognized for his or her contributions to the public good with the awarding of the Robert J. Myers Public Service Award.

The Annual Meeting is held each fall, of-fering a variety of educational opportunities in addition to a business meeting at which the new Academy president is installed, a vote for new board members is held, and a worthy actuary receives the Jarvis Farley Service Award.

The Life and Health Qualifications Semi-nar is designed to help actuaries meet the eligibility requirements for issuing annual statement reserve opinions for life and

health insurers. Held in November, the semi-nar also serves as a basic education refresh-er or a continuing education component for more experienced actuaries.

In Oct. 2005, the Academy held the inau-gural Effective P/C Loss Reserve Opin-ions: Tools for the Appointed Actuary Seminar. This one-day seminar informs preparers and signers of P/C loss reserve opinions about reg-ulations, standards, new requirements, and what users of opinions want.

The Academy also works with other actuarial organi-zations to provide continuing educa-tion (CE) to mem-

bers; the Academy and the Casualty Ac-tuarial Society jointly sponsor an annual seminar on casualty reserve opinions, and the Academy and the Conference of Con-sulting Actuaries jointly sponsor the annual Enrolled Actuaries Meeting.

Academy Continuing Education Program

Under the Qualification Standards for Prescribed Statements of Actuarial Opinion, the Academy is a provider of CE for actuar-ies. In recent years, it has significantly ex-panded its CE program.

Some of its CE offerings provide oppor-tunities to earn professional development or CE credit recognized by multiple actu-arial organizations. The CE credit available at a meeting is included in the meeting an-nouncement.


MEDIA RELATIONS The goal of the

Academy’s media rela-tions program is to in-crease the public’s rec-ognition of the value of the actuarial pro-fession by publicizing how the Academy’s ef-forts contribute to the development of sound public policy and high standards of actuarial practice and conduct. In that regard, 2005 was a banner year with historically high media visibility, both in qual-ity and quantity.

In 2005 the Acad-emy generated more than double the number of media place-ments it had the year before. By the end of December the Academy had been cited 560 times by media outlets across the country. In all of 2004 (also a record-setting year), the Academy generated 225 placements. Academy volunteers handled 207 interviews and media inquiries through November, generating 58 million media impressions (combined readership, listenership, and viewership), and another 147 million web impressions on media outlets’ websites.

USA Today, the New York Times, the Los Angeles Times, the Washingon Post, the Wall Street Journal, CNNMoney, Forbes, Barrons, and the Associated Press and Re-uters wire services all published one or more articles citing the Academy’s work. Acad-emy Senior Pension Fellow Ron Gebhardts-bauer discussed Social Security and pension reform on MSNBC television and BBC ra-dio. C-SPAN covered the Academy when its members testified before Congress.

The trade press also relied on the Acad-emy as a source, with dozens of citings on a wide range of issues in National Under-writer, Best’s Review, Business Insurance, and Pensions and In-vestments.

The New York Times published a glowing editorial endorsing the efforts of the Acade-my to require that the chief actuaries of the Social Security and Medicare/Medicaid programs actually be actuaries. Currently,

an actuarial designation is not a legal require-ment for these positions.

The Academy’s proactive media relations program was in high gear in 2005, starting with a news conference on Social Security re-form just before the State of the Union address, and followed by additional briefings on Social Security, Medicare and Medicaid, and pension reform and retirement issues. Near the end of the year the Academy issued a statement in support of the Terrorism Risk Insurance Act that was heavily covered by the trade media and appeared to contribute to the temporary extension of the law.

One of the reasons for the success of the media relations program is the Academy’s official spokesperson program, which has provided media training to more than 40 volunteers. In 2005, both the Society of Actuaries and the Casualty Actuarial So-ciety participated in the program, sending members of its leadership to the Academy’s training classes.

Academy Senior Pension Fellow Ron Gebhardts-bauer briefed members of the national news me-dia on the actuarial aspects of Social Security Re-form. The briefing was scheduled the day before the State of the Union address in which President Bush announced Social Security reform as one of the highest priorities of his second term, so that reporters would be prepared to raise questions about the actuarial aspects of the administra-tion’s proposals.


How to…… Pay your membership dues

The Academy’s new online process pro-vides several fast, user-friendly options for paying dues. Just go to www.actuary.org/dues.asp and follow the instructions to pay online or to print out a copy of the invoice that you can mail or fax with your dues payment. If you prefer to send the dues by mail, send the invoice and your payment to Ms. Kate Callahan, American Academy of Actuaries, 1100 17th Street NW, 7th floor, Washington, DC 20036.

If you have questions about your dues or your membership status, please con-tact Kate Callahan ([email protected]; 202-223-8196).

… Verify Your Academy Membership for the

Medicare Retiree Drug Subsidy Program

Medicare’s new prescription drug pro-gram includes a subsidy for retiree drug plans whose benefits are actuarially equiva-lent to Medicare Part D benefits. Because the law requires that an actuary be a mem-ber of the Academy to make one of these actuarial attestations, the Academy worked with the Centers for Medicare and Medic-aid Services to launch a simple online pro-cess that actuaries could use to send their Academy membership numbers and other membership information to the Medicare program. The online process was added to the Academy’s website (www.actuary.org) in August 2005. More than 800 actuaries used it in its first few months of operation.

… Volunteer for Academy Projects

Academy volunteers lead most of the Academy’s public policy and profession-

alism efforts. Through their involvement in these efforts, actuaries serve the pro-fession in a meaningful way, apply their actuarial expertise to important political questions, expand their professional net-work, become more knowledgeable about major legislative and regulatory trends that affect the profession, and gain a greater understanding of how govern-ment really works.

To learn about current and upcom-ing opportunities for volunteers at the Academy, please contact Leslie Wade ([email protected]; 202-223-8196).

… Change the Address in Your Member Record

Academy members may use one of several methods to change their address, phone number, e-mail address, and simi-lar information in their membership re-cord. It’s best to inform the Academy in a timely manner, so that issues of Con-tingencies and the Actuarial Update, or new ASB exposure drafts and other useful resources don’t get left behind.

Online — The quickest way to change your membership listing is to go to the home page of the Academy website (www.actuary.org), click on “Update your record” in the left column, and follow the instructions giv-en. Note: Your listing with other actuarial organizations will also need to be updated, and instructions for making those changes are provided in “Update your record.”

E-mail — Send an e-mail with the re-quested changes to Kate Callahan at the Academy ([email protected]).

U.S mail — Send a letter with the request-ed changes, being sure to include a phone number and/or e-mail address so the Acad-emy can contact you quickly if necessary. The letter should be addressed to: Ms. Kate Callahan, American Academy of Actuaries, 1100 17th Street NW, 7th floor, Washington, DC 20036.

If you have questions about your member


record or your membership status, please contact Kate Callahan ([email protected]; 202-223-8196).

… Request a Missing Publication

Contact Virginia Keene at the Academy and let her know which publications you need. If possible, please specify the month and year when the missing item was published.

Requests for missing publications may be mailed, faxed, e-mailed, or made by phone to Mrs. Virginia Keene ([email protected]; 202-223-8196; American Academy of Actu-aries, 1100 17th Street NW, 7th floor, Wash-ington, DC 20036)

… Find an Actuarial Club in Your Area

A comprehensive list of local actu-arial clubs and Casualty Actuarial Society Regional Affiliates is maintained on the Academy website at www.actuary.org.


Academy Staff

Executive Director

Executive Director: Kevin Cronin

Project Manager, CRUSAP: Mindy ReiserExecutive Assistant: Miranda Dedja

Communications

Director: Noel Card

Meeting Planner and Executive Assistant: Denise WinstonAdministrative Assistant: Tarita Leftwich

Assistant Director for Public Affairs: Chris RobichauxPublic Affairs Manager: Leslie Wade

Media Relations Manager: Andrew SimonelliCommunications Assistant: Virginia Keene

Assistant Director for Publications and Senior Editor, Contingencies: Steve SullivanManaging Editor of Internet and New Media: Anne Asplen

Managing Editor of Member Publications: Linda MallonMarketing and Publications Production Manager: Joe Vallina

Web Master: Patty ChildersAssistant Director, Technology: Mark Paster

Membership Operations Coordinator: Kathleen Callahan


Finance and Administration

Director: Joanne B. Anderson

Manager, HR and Office Operations: Gail IngramSenior Staff Accountant: Kathy Bland

Accounting Coordinator: Alberta PhillipsHuman Resources Coordinator: Tireaka Peppers

Receptionist: Veora Riggins

Legal and Professionalism

General Counsel and Director: Lauren M. Bloom

Staff Attorney, ABCD Issues: Thomas GriffinProfessionalism Analyst: Vacant

Of Counsel: Kit PardeeLegal Assistant: Rita Winkel

ABCDStaff Attorney, ABCD Issues: Thomas Griffin

Of Counsel: Kit PardeeLegal Assistant: Rita Winkel

ASBASB Program Manager: Caren Clark

Standards Editor: Erica KennedyEditorial/Administrative Assistant: Doreen Evans


Public Policy

Director: Craig Hanna

Senior Health Fellow: Cori UccelloSenior Pension Fellow: Ron GebhardtsbauerSenior Policy Analyst, Casualty: Greg Vass

Senior Health Policy Analyst (Federal): Holly KwiatkowskiHealth Policy Analyst (State): Gerilyn Trujillo

Life Policy Analyst: Amanda YanekSenior Pension Policy Analyst: Heather Jerbi

Risk Management and Financial Reporting Policy Analyst: VacantAdministrative/Legislative Manager: Kasha Shelton

Legislative Assistant: Tina GetachewAdministrative Assistant: Phillip Hafler

Academy website: www.actuary.orgStaff e-mail addresses: [last name]@actuary.orgTelephone 202 223 8196 Facsimile 202 872 1948

Membership AdministrationKathleen Callahan, Membership Operations Coordinator

1100 Seventeenth Street, N.W., Seventh Floor Washington, D.C. 20036


The Actuarial Standards BoardThe Actuarial Standards Board (ASB) was established on July 1, 1988, as an independent entity managed with Academy staff support. The ASB has the authority to prescribe its own operating procedures; to establish committees, subcommittees, and task forces it may deem necessary in carrying out its assigned functions; and to appoint individuals to positions on such committees, subcommittees, and task forces. The operating committees report to the ASB and function under its direction. The ASB also has the authority to approve exposure of proposed standards and hold public hearings on them, and to adopt recommended stan-dards of practice.

The ASB is charged with the following: (1) to direct and manage the development of actu-arial standards of practice by its operating committees in all areas of actuarial practice; (2) to expose, promulgate or adopt, and publish actuarial standards of practice, within its sole discretion and pursuant to such procedures as it deems appropriate, in all areas of actuarial practice; and (3) to provide continuous review of existing standards of practice and deter-mine whether they are in need of amendment, alteration, expansion, or elimination.

The ASB in 2005Since October 2004, the ASB has exposed a number of proposed and revised ASOPs and

adopted several revised ASOPs. The ASB also approved a new introduction to the standards that explains the purpose, nature, and format of ASOPs (as well as some of the commonly used terms and concepts) and released an updated library of standards on CD-ROM.


Actuarial Standards Board:Cecil Bykerk, Chairperson

Casualty Committee:Christopher Carlson, Chairperson

General Committee:W.H. Odell, Chairperson

Life Committee:Robert Meilander, Chairperson

Subcommittee on Reserving:Raji Bhagavatula, Chairperson

Subcommittee on Ratemaking:Patrick Woods, Chairperson

Task Force to Revise ASOP No. 38:Burton Jay, Chairperson

Health Committee:Alan Ford, Chairperson

Task Force to Revise ASOP No. 8:Paul Fleischacker, Chairperson

Task Force to Revise ASOP No. 3:Molly Shaw, Chairperson

Task Force to Revise ASOP No. 24:Michael Cioffi, Chairperson

Task Force to Revise ASOP No. 15:Thomas Phillips, Chairperson

Pension Committee:David Fleiss, Chairperson

Task Force to Revise ASOP No. 16:Mary Murley, Chairperson


Actuarial Standards Board

Cecil Bykerk, ChairpersonGodfrey Perrott, Vice-ChairpersonLawrence Sher, Vice-ChairpersonWilliam CutlipRobert MiccolisLew NathanWilliam ReimertKaren TerryLauren Bloom, Staff LiaisonCaren Clark, Staff LiaisonErica Kennedy, Staff Liaison

Casualty Committee of the ASB

In accordance with procedures prescribed by the ASB, this committee develops actu-arial standards of practice in the property/casualty insurance area.

Christopher Carlson, ChairpersonRaji BhagavatulaRonald KozlowskiClaus MetznerDavid OttoAlfred WellerPatrick WoodsErica Kennedy, Staff Liaison

Subcommittee on RatemakingPatrick Woods, ChairpersonGregory HaywardMarc PearlJonathan WhiteErica Kennedy, Staff Liaison

Subcommittee on ReservingRaji Bhagavatula, ChairpersonWilliam BelvinRalph BlanchardEdward FordLouise FrancisMargaret Wendy GermaniMary Frances MillerTerrence O’BrienChandrakant Patel

David PowellJason RussLee SteeneckChester SzczepanskiErica Kennedy, Staff Liaison

General CommitteeIn accordance with the procedures of

the ASB, this committee develops actuarial standards of practice that apply to actuaries in all practice areas.

W.H. Odell, ChairpersonCharles BryanThomas CustisBurton JayMark LitowChester SzczepanskiRonnie Susan ThiermanCaren Clark, Staff Liaison

Task Force to Revise ASOP No. 38Burton Jay, ChairpersonDavid AxeneNick BieterLuke GirardLance GrigsbyDavid IngramRonald KozlowskiJames LamsonJeffrey MohrenweiserW.H. OdellMartin SimonsJames TurpinRichard WendtCaren Clark, Staff Liaison

Health Committee of the ASBIn accordance with procedures prescribed

by the ASB, this committee develops actu-arial standards of practice in the health in-surance area.

Alan Ford, ChairpersonMichael AbroeGary BraceRobert CoswayPaul FleischackerJohn Friesen


James GuttermanMary MurleyMolly ShawJohn StarkErica Kennedy, Staff Liaison

Task Force to Revise ASOP No. 3Molly Shaw, ChairpersonGary BraceDave BondGary TeitelDarryl WagnerGregory ZebolskyErica Kennedy, Staff Liaison

Task Force to Revise ASOP No. 8Paul Fleischacker, ChairpersonTimothy CourtneyJohn FriesenMichael GrossJames GuttermanJulia PhilipsWilliam SarniakJohn StarkErica Kennedy, Staff Liaison

Task Force to Revise ASOP No. 16Mary Murley, ChairpersonMichael AbroeRobert CoswayJames GuttermanDarrell KnappDavid OttoJohn StarkErica Kennedy, Staff Liaison

Life Committee of the ASB

In accordance with procedures prescribed by the ASB, this committee develops actu-arial standards of practice in the life insur-ance area.

Robert Meilander, ChairpersonCharles CarrollMichael CioffiDale Hagstrom

Thomas PhillipsAllan RyanBarry SheminErica Kennedy, Staff Liaison

Task Force to Revise ASOP No. 15Thomas Phillips, ChairpersonArmand dePaloPhillip GriggDale HagstromGary PetersonStephen SteinigErica Kennedy, Staff Liaison

Task Force to Revise ASOP No. 24Michael Cioffi, ChairpersonJose Andrade-CoraJess GellerDale HagstromGary WheelerErica Kennedy, Staff Liaison

Pension Committee of the ASB

In accordance with procedures prescribed by the ASB, this committee develops actu-arial standards of practice in the pension area.

David Fleiss, ChairpersonDavid DriscollDavid FriedlanderMarilyn JanzenDaniel Laline, Jr.Alexander Morgan IVTimothy RyorFrank TodiscoRuth WilliamsCaren Clark, Staff Liaison


Actuarial Board for Counseling

and DisciplineThe Actuarial Board for Counseling and

Discipline (ABCD) was formed to serve the five U.S.-based organizations representing actuaries. The ABCD considers complaints and questions concerning possible viola-tions of the Code of Professional Conduct. In addition, the ABCD responds to inquiries by actuaries concerning their professional conduct and, when requested to do so, pro-vides guidance in professional matters.

Organizations served by the ABCD in-clude the Academy, the American Society of Pension Professionals and Actuaries, the Ca-sualty Actuarial Society, the Conference of Consulting Actuaries, and the Society of Ac-tuaries. The ABCD also serves the Canadian Institute of Actuaries relative to practice by its members in the United States.

The ABCD’s members represent all main areas of actuarial practice and all U.S. or-ganizations representing actuaries. ABCD members are appointed by a selection com-mittee composed of the presidents and presidents-elect of the U.S. organizations.

The ABCD was established effective Jan. 1, 1992, as an independent entity adminis-tered with Academy staff support.

Upon delegation of appropriate authority from a participating actuarial organization and acceptance of that delegation by the ABCD, the ABCD is authorized:

1. To consider all complaints or information suggesting possible violations of the ap-plicable Code(s) of Professional Conduct and all questions that may arise as to the conduct of a member of a participating actuarial organization in the member’s relationship to the organization or its members, or in the member’s professional practice, or affecting the interests of the

actuarial profession; 2. To counsel actuaries concerning their

professional activities related to the ap-plicable Code(s) of Professional Conduct in situations where the ABCD deems counseling appropriate;

3. To recommend a disciplinary action with respect to an actuary to any participating organization of which that actuary is a member;

4. To respond to requests for guidance re-garding professionalism from members of the participating organizations;

5. To mediate issues between members of participating actuarial organizations, or between such members and the public, for the purpose of informally resolving is-sues concerning the professional conduct of such members.

Actuarial Board for Counseling and Discipline

William Falk, ChairpersonLawrence Johansen, Vice-ChairpersonMichael Toothman, Vice-Chairperson Linda Bell Edward Burrows Julia Philips Richard Robertson Carol Sears Jack TurnquistThomas Griffin, Staff Liaison


Professionalism Standards and Code of Conduct

Professionalism

There are three types of professional standards: the Code of Professional Conduct, which provides ethical guidance; the Qualification Standards, which provide guidance to actuar-ies regarding the necessary education and experience to do work; and Actuarial Standards of Practice to guide actuaries in how to do work. The Actuarial Board for Counseling and Discipline provides advice and guidance to actuaries and investigates actuaries if qualifica-tions, practice standards, or ethical requirements have not been met.

Actuarial Standards and Guidance

Professional and Ethical Requirements

Qualifications (Education and Experi-ence to Do Work

How to Do Work

Advice/ Guidance/ Investigation

Specific Guidance

Code of Professional Conduct

General and specific qualification standards for Prescribed Statements of Actuarial Opinions

Actuarial Standards of Practice

Counseling and inves-tigation on qualifications, actuarial standards, and ethics

Provider Academy Board of Di-rectors

Academy Committee on Qualifications




Professional Standards

This table displays the array of professional standards and activities. Unless otherwise noted, applicable materials are included in the actuarial standards handbooks.

Code of Profes-sional Conduct

General Qualifica-tions Standards

Specific Qualifica-tion Standards

Continuing Educa-tion Requirements

Developing Committee

Joint Committee on Code of Profes-sional Conduct

Committee on Qualifications



Published Guidance Code of Profes-sional Conduct booklet

Qualification Stan-dards booklet



Guidance for Individual actuary Those qualified to give Prescribed Statements of Actuarial Opinion

Those qualified to give Prescribed Statements of Actuarial Opinion

Retention of the actuary’s quali-fication to give Prescribed State-ments of Actuarial Opinion

Practice Areas Covered

All four major practice areas:•Life•Health•Pension•Casualty


NAIC Annual State-ment Opinions for •LifeandAandH•FireandCasualty•Hosp.,Med.,andDent. Serv., etc.

All Prescribed Statements of Actuarial Opinion

Standards of Practice

Compliance Guidelines

Counseling and Discipline

Developing Committee




Published Guid-ance

Standards of Practice

Compliance Guide-lines

Academy Bylaws as published in 2001 Yearbook (Procedural guidelines have been separately issued)

Guidance for Range of proce-dures for day-to-day work: actuary’s own methods

Day-to-day work: outside require-ments

Compliance with ethics, Qualifications Standards, and Actuarial Standards of Practice

Practice Areas Covered

Practice area described in the Standard

Practice area described in the guideline


* Prescribed statements of actuarial opinion are: opinions called for by law or regulation; opinions called for by a standard of practice or a compliance guideline as promulgated by the Actuarial Standards Board; or actuarial communications made for purposes of compliance with standards promulgated by the Financial Accounting Standards Board or the Governmental Accounting Standards Board.


Code of Professional

ConductEffective January 1, 2001, the five U.S.-based actuarial organizations adopted this Code of Professional Conduct. It was adopted by the Board of Directors of the American Academy of Actuaries on Septem-ber 28, 2000, and applies to all members.

The Code of Professional Conduct sets forth what it means for an actuary to act as a professional. It identifies the respon-sibilities that actuaries have to the public, to their clients and employers, and to the actuarial profession.

The Board of the American Academy of Actuaries thanks the Joint Committee on the Code of Professional Conduct for their hard work and perseverance in drafting the Code and obtaining the approval of all five organizations’ boards.Code of Professional ConductThe purpose of this Code of Professional Conduct (“Code”) is to require Actuaries to adhere to the high standards of conduct, practice, and qualifications of the actuarial profession, thereby supporting the actu-arial profession in fulfilling its responsibil-ity to the public. An Actuary shall comply with the Code. An Actuary who commits a material violation of the provisions of the Code shall be subject to the profession’s counseling and discipline procedures.

The Precepts of the Code identify the pro-fessional and ethical standards with which an Actuary must comply in order to fulfill the Actuary’s responsibility to the public and to the actuarial profession. The Annotations provide additional explanatory, educational, and advisory material on how the Precepts are to be interpreted and applied.

In addition to this Code, an Actuary is subject to applicable rules of profes-sional conduct or ethical standards that have been promulgated by a Recognized Actuarial Organization for the jurisdictions in which the Actuary renders Actuarial Services. Actuarial Services are considered to be rendered in the jurisdictions in which the Actuary intends them to be used unless specified otherwise by an agreement be-tween a Recognized Actuarial Organization for any such jurisdiction and the organiza-tions that have adopted the Code.

Laws may also impose obligations upon an Actuary. Where requirements of Law conflict with the Code, the requirements of Law shall take precedence.

An Actuary must be familiar with, and keep current with, not only the Code, but also applicable Law and rules of professional conduct for the jurisdictions in which the Actuary renders Actuarial Services. An Actuary is responsible for securing transla-tions of such Laws or rules of conduct as may be necessary.

Definitions:As used throughout the Code, the follow-ing terms are capitalized and have the meanings indicated:

Actuarial Communication: A written, elec-tronic, or oral communication issued by an Actuary with respect to Actuarial Services.

Actuarial Services: Professional Services provided to a Principal by an individual acting in the capacity of an actuary. Such services include the rendering of advice, recommendations, findings, or opinions based upon actuarial considerations.

Actuary: An individual who has been ad-mitted to a class of membership to which the Code applies by action of any organiza-


tion having adopted the Code. When the term “actuary” is used without being capi-talized, it refers to any individual practicing as an actuary, regardless of organizational membership or classification.

Confidential Information: Information not in the public domain of which an Actuary becomes aware as a result of providing Actuarial Services to a Principal. It includes information of a proprietary nature and information that is legally restricted from circulation.

Law: Statutes, regulations, judicial deci-sions, and other statements having legally binding authority.

Principal: A client or employer of the Actuary.

Recognized Actuarial Organization: An organization that has been accepted for full membership in the International Ac-tuarial Association or a standards-setting, counseling, or discipline body to which authority has been delegated by such an organization.

Professional IntegrityPRECEPT 1. An Actuary shall act honestly, with integrity and competence, and in a manner to fulfill the profession’s respon-sibility to the public and to uphold the reputation of the actuarial profession.

ANNOTATION 1-1. An Actuary shall per-form Actuarial Services with skill and care.

ANNOTATION 1-2. An Actuary shall not provide Actuarial Services for any Prin-cipal if the Actuary has reason to believe that such services may be used to violate or evade the Law or in a manner that would be detrimental to the reputation of the actuarial profession.

ANNOTATION 1-3. An Actuary shall not

use a relationship with a third party or with a present or prospective Principal to attempt to obtain illegal or materially improper treatment from one such party on behalf of the other party.

ANNOTATION 1-4. An Actuary shall not engage in any professional conduct in-volving dishonesty, fraud, deceit, or mis-representation or commit any act that reflects adversely on the actuarial profes-sion.

Qualification StandardsPRECEPT 2. An Actuary shall perform Actuarial Services only when the Actuary is qualified to do so on the basis of basic and continuing education and experience, and only when the Actuary satisfies applicable qualification standards.

ANNOTATION 2-1. It is the professional responsibility of an Actuary to observe applicable qualification standards that have been promulgated by a Recognized Actuarial Organization for the jurisdic-tions in which the Actuary renders Actu-arial Services and to keep current regard-ing changes in these standards.

ANNOTATION 2-2. The absence of ap-plicable qualification standards for a particular type of assignment or for the jurisdictions in which an Actuary renders Actuarial Services does not relieve the Actuary of the responsibility to perform such Actuarial Services only when quali-fied to do so in accordance with this Pre-cept.

Standards of PracticePRECEPT 3. An Actuary shall ensure that Actuarial Services performed by or under the direction of the Actuary satisfy appli-cable standards of practice.

ANNOTATION 3-1. It is the professional responsibility of an Actuary to observe applicable standards of practice that have


been promulgated by a Recognized Ac-tuarial Organization for the jurisdictions in which the Actuary renders Actuarial Services, and to keep current regarding changes in these standards.

ANNOTATION 3-2. Where a question arises with regard to the applicability of a standard of practice, or where no ap-plicable standard exists, an Actuary shall utilize professional judgment, taking into account generally accepted actuarial principles and practices.

ANNOTATION 3-3. When an Actuary uses procedures that depart materially from those set forth in an applicable standard of practice, the Actuary must be prepared to justify the use of such procedures.

Communications and Disclosure

PRECEPT 4. An Actuary who issues an Actuarial Communication shall take ap-propriate steps to ensure that the Actuarial Communication is clear and appropriate to the circumstances and its intended audi-ence, and satisfies applicable standards of practice.

ANNOTATION 4-1. An Actuary who issues an Actuarial Communication shall ensure that the Actuarial Communication clearly identifies the Actuary as being respon-sible for it.

ANNOTATION 4-2. An Actuary who issues an Actuarial Communication should in-dicate the extent to which the Actuary or other sources are available to provide supplementary information and expla-nation.

PRECEPT 5. An Actuary who issues an Ac-tuarial Communication shall, as appro-priate, identify the Principal(s) for whom the Actuarial Communication is issued and describe the capacity in which the Actuary serves.

PRECEPT 6. An Actuary shall make appropri-ate and timely disclosure to a present or prospective Principal of the sources of all direct and indirect material compensation that the Actuary or the Actuary’s firm has received, or may receive, from another party in relation to an assignment for which the Actuary has provided, or will provide, Actuarial Services for that Prin-cipal. The disclosure of sources of mate-rial compensation that the Actuary’s firm has received, or may receive, is limited to those sources known to, or reasonably as-certainable by, the Actuary.

ANNOTATION 6-1. An Actuary who is not financially and organizationally indepen-dent concerning any matter related to the performance of Actuarial Services should disclose to the Principal any perti-nent relationship that is not apparent.

ANNOTATION 6-2. An Actuary employed by a firm that operates in multiple loca-tions is subject to the requirement of dis-closure of sources of compensation that the Actuary’s firm may receive in rela-tion to Actuarial Services with respect to a specific assignment for that Principal, regardless of the location in which such compensation is received.

Conflict of InterestPRECEPT 7. An Actuary shall not knowingly perform Actuarial Services involving an ac-tual or potential conflict of interest unless:

a. the Actuary’s ability to act fairly is unim-paired;

b. there has been disclosure of the conflict to all present and known prospective Principals whose interests would be af-fected by the conflict; and

c. all such Principals have expressly agreed to the performance of the Actuarial Ser-vices by the Actuary.


Control of Work ProductPRECEPT 8. An Actuary who performs Ac-tuarial Services shall take reasonable steps to ensure that such services are not used to mislead other parties.

ANNOTATION 8-1. An Actuarial Commu-nication prepared by an Actuary may be used by another party in a way that may influence the actions of a third party. The Actuary should recognize the risks of misquotation, misinterpretation, or other misuse of the Actuarial Communication and should therefore take reasonable steps to present the Actuarial Communi-cation clearly and fairly and to include, as appropriate, limitations on the distribu-tion and utilization of the Actuarial Com-munication.

ConfidentialityPRECEPT 9. An Actuary shall not disclose to another party any Confidential Information unless authorized to do so by the Principal or required to do so by Law.

Courtesy and CooperationPRECEPT 10. An Actuary shall perform Actuarial Services with courtesy and pro-fessional respect and shall cooperate with others in the Principal’s interest.

ANNOTATION 10-1. Differences of opin-ion among actuaries may arise, par-ticularly in choices of assumptions and methods. Discussions of such differences between an Actuary and another actuary, or in observations made by an Actuary to a Principal on the work of another actu-ary, should be conducted objectively and with courtesy and respect.

ANNOTATION 10-2. A Principal has an in-disputable right to choose a professional advisor. An Actuary may provide service to any Principal who requests it, even though such Principal is being or has been served by another actuary in the

same matter. ANNOTATION 10-3. An Actuary in the

course of an engagement or employment may encounter a situation such that the best interest of the Principal would be served by the Actuary’s setting out an alternative opinion to one expressed by another actuary, together with an expla-nation of the factors that lend support to the alternative opinion. Nothing in the Code should be construed as preventing the Actuary from expressing such an al-ternative opinion to the Principal.

ANNOTATION 10-4. An Actuary may be requested to advise a Principal for whom the Actuary knows or has reasonable grounds to believe that another actuary has provided, or is providing, Actuarial Services with respect to the same matter. In such event, the Actuary may choose to consult with such other actuary both to prepare adequately for the assignment and to make an informed judgment as to whether there are circumstances in-volving a potential violation of the Code that might affect acceptance of the as-signment. The Actuary should request the Principal’s consent prior to such consul-tation.

ANNOTATION 10-5. When a Principal has given consent for a new or additional actuary to consult with an Actuary with respect to a matter for which the Actu-ary is providing or has provided Actuarial Services, the Actuary shall cooperate in furnishing relevant information, subject to receiving reasonable compensation for the work required to assemble and transmit pertinent data and documents. The Actu-ary shall not refuse to consult or cooper-ate with the prospective new or additional actuary based upon unresolved compen-sation issues with the Principal unless such refusal is in accordance with a pre-existing agreement with the Principal. The Actuary need not provide any items of a propri-etary nature, such as internal communica-tions or computer programs.


AdvertisingPRECEPT 11. An Actuary shall not engage in any advertising or business solicitation activities with respect to Actuarial Services that the Actuary knows or should know are false or misleading.

ANNOTATION 11-1. Advertising and busi-ness solicitation activities encompass all communications by whatever medium, including oral communications, that may directly or indirectly influence any per-son or organization in deciding whether there is a need for Actuarial Services or in selecting a specific Actuary or firm to perform Actuarial Services.

Titles and DesignationsPRECEPT 12. An Actuary shall make use of membership titles and designations of a Recognized Actuarial Organization only in a manner that conforms to the practices au-thorized by that organization.

ANNOTATION 12-1. “Title” refers to any title conferred by a Recognized Actuarial Organization related to a specific position within that organization. “Designation” refers to a specific reference to member-ship status within such organization.

Violations of the Code of Professional Conduct

PRECEPT 13. An Actuary with knowledge of an apparent, unresolved, material viola-tion of the Code by another Actuary should consider discussing the situation with the other Actuary and attempt to resolve the apparent violation. If such discussion is not attempted or is not successful, the Actu-ary shall disclose such violation to the ap-propriate counseling and discipline body of the profession, except where the disclosure would be contrary to Law or would divulge Confidential Information.

ANNOTATION 13-1. A violation of the Code is deemed to be material if it is im-portant or affects the outcome of a situ-ation, as opposed to a violation that is trivial, does not affect an outcome, or is one merely of form.

ANNOTATION 13-2. An Actuary is not ex-pected to discuss an apparent, unresolved material violation of the Code with the other Actuary if either Actuary is prohib-ited by Law from doing so or is acting in an adversarial environment involving the other Actuary.

PRECEPT 14. An Actuary shall respond promptly, truthfully, and fully to any re-quest for information by, and cooperate fully with, an appropriate counseling and disciplinary body of the profession in con-nection with any disciplinary, counseling, or other proceeding of such body relating to the Code. The Actuary’s responsibility to re-spond shall be subject to applicable restric-tions on Confidential Information and those imposed by Law.



Documents

2006 Yearbook - American Academy of ActuariesNo part of this book may be reproduced in ... 10 2006 Yearbook • American Academy of Actuaries Frederick Kilbourne Special Director President,